Texas is one of a handful of states that is becoming more serious about cryptocurrency
Texas lawmakers have introduced a new bill aimed at creating a state-controlled Bitcoin reserve, positioning Texas as a leader in cryptocurrency adoption. Senate Bill 21 (SB 21), filed by Senator Charles Schwertner, builds upon a previous proposal and expands the state’s ability to invest in digital assets. The legislation is part of a broader push to integrate Bitcoin into state financial strategies and strengthen economic security.
SB 21 differs from an earlier version, SB 778, by granting Texas more flexibility in managing its cryptocurrency holdings. While the previous bill restricted the state to holding Bitcoin without additional uses, the updated legislation allows for active investment. This means the state could buy, sell, and manage its digital assets, treating them as a financial tool rather than a passive reserve.
One key provision of SB 21 is that it permits investments in other cryptocurrencies, provided they have maintained a market capitalization of at least $500 billion over the past year. Currently, Bitcoin is the only asset meeting this requirement, but this clause could open the door for additional digital assets in the future.
Lieutenant Governor Dan Patrick has identified SB 21 as one of the Senate’s top 40 priority bills, signaling strong support within state leadership. The bill also shifts control over cryptocurrency investments from state legislators to financial experts, which could streamline decision-making and oversight. Unlike SB 778, which had strict security and funding limitations, the new proposal removes the $500 million annual cap on Bitcoin purchases, allowing the state to allocate as much as it sees fit.
Texas is among several states exploring cryptocurrency investment strategies, with others such as North Carolina and Arizona also considering legislation. If passed, SB 21 would make the Lone Star State the first state to establish a formal Bitcoin reserve, potentially influencing similar efforts across the country.
