Texas is making news again, this time with plans to establish a strategic Bitcoin reserve, potentially becoming the first state in the United States to officially hold Bitcoin within its financial framework. The bill has passed the Texas House and now awaits the pivotal approval of Governor Greg Abbott.

What’s in the Bill?

The legislation, known as Senate Bill 21, was approved with a vote count of 101 to 42. It proposes the creation of the Texas Bullion Depository Reserve Fund, set to enable the state to invest in Bitcoin and other digital assets.

HISTORY: TEXAS passes Strategic Bitcoin Reserve bill SB 21 pic.twitter.com/6oZBbHjEgA — Bitcoin Laws (@Bitcoin_Laws) May 21, 2025

The fund would be managed by the state comptroller and maintained separately from Texas’s primary treasury. The objective is to establish a reserve of Bitcoin that can act as a hedge during challenging economic scenarios. The bill stipulates that only digital assets with a 24-month average market cap of at least $500 billion can be included, solidifying Bitcoin as the primary focus.

How It Gets Funded

Funding mechanisms for the Bitcoin reserve may include direct allocations from the legislature along with contributions from Texas residents via private donations, highlighting that only residents could donate.

The bill also requires periodic transparency through a biannual report from the comptroller, detailing asset management and performance, supported by recommendations from an advisory committee.

Why Texas Wants a Bitcoin Reserve

The advocates of this bill argue that it prepares Texas for a future where digital assets play an essential role in the financial ecosystem. Representative Giovanni Capriglione, one of its sponsors, emphasizes it as a means for Texas to exert greater control over its economic stability.

Texas is recognized as a Bitcoin-friendly environment with significant mining activities, making this move a logical progression in its financial strategy.

Other Governments Are Doing It Too

Texas isn’t isolated in this endeavor; states like New Hampshire have initiated similar legislative efforts. At the federal level, significant moves have also been made toward establishing Bitcoin reserves, highlighting a trend among governments to consider Bitcoin seriously.

What Happens Next?

The final decision lies with Governor Greg Abbott, who has 20 days to enact the bill into law or veto it. His supportive stance towards Bitcoin innovations raises expectations that he may approve the bill, which would place Texas not only in Bitcoin mining but also in holding it officially.