The Texas House of Representatives has officially passed Senate Bill 21 (SB21), a landmark measure that establishes a Strategic Bitcoin Reserve for the state. The bill was approved with a decisive 101-42 vote and now moves to Governor Greg Abbott for final consideration and potential enactment into law.
Authored by State Senator Charles Schwertner, SB21 authorizes the Texas Comptroller to create and manage a special fund outside the traditional state treasury dedicated to investing in Bitcoin and other cryptocurrencies that meet stringent market capitalization criteria. Specifically, the legislation permits investment only in digital assets maintaining a market cap of at least $500 billion over the past 24 months, effectively limiting eligible assets to Bitcoin at present.
The creation of this reserve marks Texas as the third U.S. state—after Arizona and New Hampshire—to formally integrate Bitcoin into its public investment portfolio. The fund will be managed with oversight by the State Treasurer, who will have authority to acquire, stake, and liquidate digital assets under strict guidelines. Funding sources for the reserve include legislative appropriations, donations from residents and corporations, and returns on investments.
Supporters of SB21 emphasize the bill’s role in positioning Texas at the forefront of financial innovation and securing the state’s economic future amid evolving global finance. Representative Giovanni Capriglione described the legislation as a pivotal step toward embracing modern assets with promising long-term value, while industry leaders highlight Bitcoin’s potential to hedge against inflation and market volatility.
Following its passage in the House, the bill requires a final Senate approval due to recent amendments before reaching the Governor’s desk. If signed into law, Texas—home to the world’s eighth-largest economy with a GDP exceeding $2.6 trillion—would become a pioneer in state-level cryptocurrency investment, potentially influencing broader adoption across the United States.
Governor Abbott will have 20 days to sign or veto the bill; if no action is taken, SB21 will become law automatically. This development underscores Texas’s commitment to integrating digital assets into its fiscal strategy and highlights growing governmental acceptance of cryptocurrency as a legitimate public asset.
