Texas Set to Officially Adopt Bitcoin Reserve, Awaiting Final Approval to Become Law
Texas is one step closer to becoming the second US state to hold a Bitcoin reserve as part of its financial strategy, after the state House of Representatives passed a landmark bill.
The Texas House of Representatives has passed the third and final reading of Senate Bill 21 – a bipartisan proposal to establish a state-managed Bitcoin reserve. With a 101-42 vote, the bill now awaits a vote on amendments and Governor Greg Abbott’s signature to become law.
The bill, authored by Senator Charles Schwertner and sponsored by Representative Giovanni Capriglione in the House, outlines the rules for creating and operating a state-owned strategic Bitcoin reserve. The state comptroller’s investment agency would be authorized to oversee the purchase, holding, and distribution of these digital assets.
In a second vote on May 20, the House passed an amendment introduced by Rep. Linda Garcia (D-TX), extending the market capitalization requirement for eligible cryptocurrencies from 12 to 24 months. The bill received strong support, 105-23, indicating the bipartisan nature of the initiative, although not unanimous.
However, the final vote tally showed increased opposition, with 42 votes against, reflecting some concerns about the risks and sustainability of a state-run cryptocurrency policy.
According to Jerry McGinty, director of the Texas Legislative Budget Council, the fiscal impact of the bill is currently unknown. He said it was unclear what the budget allocation for the reserve would be, as well as the amount and value of the crypto assets that would be purchased. McGinty noted that any administrative costs would likely be covered by profits generated from the reserve itself.
If fully approved, Texas would become the second state in the US – after New Hampshire – to formally establish and operate a state-level Bitcoin reserve, marking a new step in integrating digital assets into the public financial management system.
In another crypto-related development in Texas, Rep. Lance Gooden (R-TX) has called on the federal government to install cryptocurrency ATMs in government buildings to promote the popularization of digital assets among Americans. His proposal is seen as reflecting the growing wave of lawmakers who want to bring crypto closer to everyday life.
Senate Bill 21 is setting a new precedent for other states in the United States to consider integrating Bitcoin into the national financial reserve portfolio – a milestone that could change the way local governments approach digital assets in a rapidly shifting global digital economy.