KEY FACTS: The Texas House Committee on Delivery of Government Efficiency has passed Senate Bill 21 (SB 21) with a 9-4 vote, advancing the Republican-backed proposal to establish a state-run Bitcoin reserve for a full House floor vote. Initially introduced by Senator Charles Schwertner, the bill allows the Texas Strategic Bitcoin Reserve, managed by State Comptroller Glenn Hegar, to hold Bitcoin and other cryptocurrencies with a market cap exceeding $500 billion, funded by government appropriations and voluntary donations. If passed, Texas would join New Hampshire and Arizona as the third U.S. state with a formal Bitcoin reserve, aligning with a growing trend of state-level cryptocurrency adoption amid inflation and economic volatility concerns.
Source: The Seal of Texas
Texas House Committee Advances Bitcoin Reserve Bill
The Texas House committee passed a Republican-backed bill to establish a state-run Bitcoin reserve, bringing the legislation within one vote of reaching Governor Greg Abbott’s desk. On May 7, 2025, the Texas House Committee on Delivery of Government Efficiency approved Senate Bill 21 (SB 21) with a 9-4 vote along party lines, paving the way for a full floor vote in the Texas House of Representatives. If passed, Texas would join New Hampshire and Arizona as the third U.S. state to formalize a Bitcoin reserve, marking a pivotal moment in the growing momentum among state governments to embrace digital assets as a strategic financial tool.
The bill, initially introduced by Republican Senator Charles Schwertner in January 2025, originally focused solely on Bitcoin (BTC). However, it was refiled in February to broaden its scope, allowing the inclusion of other digital assets with a minimum market capitalization of $500 billion over the past 12 months. As of now, Bitcoin remains the only cryptocurrency to meet this threshold, making it the primary candidate for the proposed Texas Strategic Bitcoin Reserve. The reserve would be managed by State Comptroller Glenn Hegar, who would be authorized to allocate state funds into eligible crypto assets, funded through government appropriations and voluntary donations from individuals and businesses.
Supporters of SB 21 argue that the creation of a Bitcoin reserve aligns Texas with innovation and strengthens the state’s financial resilience amid global monetary uncertainties. The bill’s proponents view Bitcoin as a hedge against inflation and a potential safeguard against economic volatility, likening it to traditional reserve assets like gold. The Texas Senate had previously passed SB 21 on March 6, 2025, with a strong bipartisan vote of 25-5, reflecting broad support for the initiative. The bill’s progression through the House committee underscores Texas’ aggressive push to integrate cryptocurrency into its fiscal strategy, a trend that has gained traction across the United States following President Donald Trump’s vocal support for digital assets during his 2024 presidential campaign.
Texas is not alone in its pursuit of a Bitcoin reserve. On May 6, 2025, New Hampshire Governor Kelly Ayotte signed House Bill 302 into law, allowing the state’s treasury to invest up to 10% of its general funds in cryptocurrencies with a market cap exceeding $500 billion. Similarly, on May 7, 2025, Arizona Governor Katie Hobbs signed House Bill 2749, establishing a Bitcoin and Digital Assets Reserve Fund to hold unclaimed digital assets seized by the state. These developments reflect a movement among U.S. states to explore cryptocurrencies as part of public financial strategies, with at least 23 states having introduced Bitcoin reserve-related legislation, according to data from Bitcoin Laws.
However, not all states have embraced this trend. On May 6, 2025, Florida shelved its Bitcoin reserve plans, joining Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, where similar bills were rejected in recent votes. In Arizona, Governor Hobbs had previously vetoed a bill in April 2025 that would have made Bitcoin part of the state’s official reserves, citing investment risks. Her eventual approval of a more limited reserve fund suggests a cautious but evolving acceptance of digital assets.
The Texas Bitcoin Reserve: Structure and Goals
If SB 21 becomes law, the Texas Strategic Bitcoin Reserve would be overseen by the state comptroller and a panel of four experts in cryptocurrency and digital finance. The reserve aims to amass a store of cryptocurrencies with a collective market capitalization exceeding $500 billion, positioning Texas to hedge against inflation and financial uncertainties. Funding for the reserve would come from a combination of government appropriations and voluntary contributions, a model designed to minimize fiscal strain while encouraging public participation. The bill’s passage through the House committee has sparked enthusiasm among cryptocurrency advocates, who see it as a validation of Bitcoin’s growing legitimacy.
Despite the optimism, SB 21 faces challenges as it heads to the full House for a floor vote. The 9-4 committee vote, split along party lines, suggests potential resistance from Democratic lawmakers, who may raise concerns about the volatility of cryptocurrencies and the risks of investing public funds in a relatively untested asset class. Critics point to the inherent risks of cryptocurrency markets, which are prone to significant price swings and vulnerabilities to cyberattacks. For instance, a February 2025 FBI report accused North Korea-affiliated hackers of stealing $1.5 billion in Ethereum from the Bybit exchange, underscoring the security challenges facing digital assets.
Additionally, some lawmakers and analysts question the necessity of a state-run Bitcoin reserve. An editorial in The Dallas Morning News argued that “most Americans don’t trust cryptocurrency,” questioning why Texas would prioritize a Bitcoin reserve when reserve funds are traditionally used for conservative investments to cover unexpected expenses or revenue shortfalls. Others, like Democratic Representative Terry Spahr in New Hampshire, have argued that existing financial mechanisms may already provide states with the authority to invest in digital assets, rendering such bills redundant.
The push for a Bitcoin reserve is part of the strategy to position Texas as a hub for cryptocurrency and blockchain innovation. Texas Lieutenant Governor Dan Patrick announced in January 2025 that establishing a Bitcoin reserve would be a legislative priority, aligning with the state’s pro-business and pro-innovation ethos. The Texas Blockchain Council, led by President Lee Bratcher, has championed the initiative, citing the state’s unique convergence of energy resources in Houston, technology in Austin, and capital markets in Dallas as ideal for Bitcoin adoption.
Texas has also introduced complementary legislation to bolster its crypto ambitions. On March 10, 2025, Representative Ron Reynolds filed House Bill 4258, which would authorize the state comptroller to invest up to $250 million from the Economic Stabilization Fund—often referred to as the state’s “rainy day fund”—into Bitcoin and other cryptocurrencies. The bill also imposes a five-year restriction on selling state-owned Bitcoin, signaling a long-term commitment to holding digital assets.
As SB 21 awaits a full floor vote in the Texas House, expected by May 24, 2025, its fate will depend on whether it can garner sufficient bipartisan support. The Republican majority in the House gives the bill a strong chance of passing, but Democratic opposition could complicate its path. If approved, the bill would head to Governor Greg Abbott, a known supporter of pro-business policies, for final approval. Abbott’s signature would make Texas the third U.S. state to establish a formal Bitcoin reserve, further cementing its reputation as a leader in the digital asset space.
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