Texas lawmakers are making strides toward creating a state-managed Bitcoin reserve through Senate Bill 21 (SB 21). This proposed law expands upon previous legislation (SB 778) by removing the $500 million cap on Bitcoin purchases and allowing investments in additional cryptocurrencies.
On February 7, 2025, SB 21 was formally introduced in the Texas Senate and is now under review by the Senate Finance Committee. If passed, it could take effect immediately with a two-thirds majority vote or on September 1, 2025, otherwise.
Texas’ Push for Digital Asset Leadership
Texas State Senator Charles Schwertner, the bill’s sponsor, emphasized that SB 21 aims to position Texas as a leader in digital asset adoption. The Texas Strategic Bitcoin Reserve will have the authority to buy, sell, and manage Bitcoin, along with other eligible cryptocurrencies, for financial transactions.
The bill’s updated provisions permit investment in cryptocurrencies with a minimum market value of $500 billion over the past year. This requirement ensures that only well-established digital assets qualify, excluding newer or highly volatile cryptocurrencies.
Another significant change is the removal of the $500 million cap on Bitcoin purchases. Instead, the size of Texas’ crypto reserves will be determined by market conditions and state financial strategies. By eliminating this restriction, Texas aims to enhance blockchain innovation and drive economic growth in the digital asset space.
Growing Interest in Bitcoin Reserves Across the U.S.
Texas is not alone in considering cryptocurrency as part of its financial reserves. According to industry expert Matthew Sigel, at least 17 states have introduced legislation exploring Bitcoin investments within government reserves or pension funds.
Among these states:
- Utah, Oklahoma, Ohio, and Illinois have moved their Bitcoin-related bills forward to committee hearings.
- Wyoming’s proposal failed to gain enough legislative support.
- Utah has made significant progress, securing a favorable vote for its Bitcoin initiative.
Sigel also estimated that if these state-level Bitcoin purchases materialize, their combined holdings would reach 242,787 BTC, valued at approximately $23.54 billion. This figure would surpass the U.S. federal government’s current Bitcoin holdings (198,109 BTC), highlighting the growing institutional acceptance of digital assets at the state level.
Conclusion
With SB 21 now under Senate Finance Committee review, its passage could set a precedent for other states seeking to incorporate Bitcoin and other digital assets into their financial strategies. Texas’s commitment to financial innovation positions it as a frontrunner in crypto adoption, signaling a broader shift toward state-level digital asset integration.
Reece Conner
Reece Conner is a leading expert in the cryptocurrency industry, known for delivering cutting-edge insights and practical guidance to both newcomers and seasoned investors. With a background in finance and technology, Conner bridges the gap between complex blockchain concepts and real-world applications.