The Texas Senate has approved the final revisions to Senate Bill 21 (SB 21), officially titled the Texas Strategic Bitcoin Reserve and Investment Act. The bill, which seeks to establish a state-managed Bitcoin reserve, has now cleared both chambers of the Texas Legislature and is headed to Governor Greg Abbott’s desk for final approval.
The legislation, authored by Senator Charles Schwertner and sponsored in the House by Representative Giovanni Capriglione, passed the Texas House with a strong bipartisan vote of 101-42 on May 21, 2025, and has now secured Senate concurrence on House amendments. The bill authorizes the Texas comptroller to create and manage a “Texas Strategic Bitcoin Reserve,” allowing the state to purchase, hold, and oversee Bitcoin and other cryptocurrencies with a market capitalization exceeding $500 billion over a 24-month period—a threshold currently met only by Bitcoin.
Proponents of SB 21, including Lieutenant Governor Dan Patrick and the Texas Blockchain Council, view the bill as a forward-thinking measure to position Texas as a leader in the digital economy. “This is a pivotal moment in securing Texas’s leadership in the digital age,” said Rep. Capriglione, emphasizing the bill’s role in recognizing digital assets as a strategic opportunity for fiscal resilience.
The bill’s passage follows a robust legislative process, with the Senate initially approving SB 21 in March 2025 by a vote of 25-5. After House amendments, including a change to extend the market cap evaluation period from 12 to 24 months, a conference committee reconciled differences between the chambers. Notably, a provision allowing private cryptocurrency donations to the fund was removed during final negotiations.
If signed into law, Texas would become the third U.S. state to establish a strategic Bitcoin reserve, following New Hampshire and Arizona. Governor Abbott, a vocal supporter of cryptocurrency who has previously advocated for Texas to become a “crypto capital,” is widely expected to sign the bill within the next 20 days. Should he take no action, the bill will automatically become law.
Some lawmakers, like Rep. Ron Reynolds, have expressed concerns that the bill may favor wealthy investors and expose taxpayers to potential losses. Despite these concerns, the bill includes safeguards, such as requiring the comptroller to publish biennial reports on the reserve holdings and valuation changes for transparency.
The passage of SB 21 comes amid a broader national trend, with 47 similar bills introduced across 26 states, though many have faced challenges. Texas’s move could have a significant impact on the cryptocurrency market, given the state’s $2.7 trillion GDP and its status as a hub for Bitcoin mining. As of May 31, 2025, Bitcoin’s price hovers around $104,177.61 to $111,000, reflecting growing optimism surrounding state-level adoption.
