Texas Strategic Bitcoin Reserve Bill Passes Second Reading with Strong Bipartisan Support

In a significant development for cryptocurrency adoption at the governmental level, the Texas House of Representatives has passed the Strategic Bitcoin Reserve Bill (SB 21) in its second reading with overwhelming support of 105-23. The bill, which aims to establish a state-managed Bitcoin reserve, now requires just one final vote before heading to Governor Greg Abbott’s desk for signature.

JUST IN: Texas Strategic Bitcoin Reserve bill SB21 passes the second reading 🇺🇸 pic.twitter.com/qNqLYSvNP8

— Bitcoin Magazine (@BitcoinMagazine) May 20, 2025

What the Bill Proposes

SB 21 outlines the creation of the Texas Strategic Bitcoin Reserve, which would allow the state to hold Bitcoin as part of its official assets. The legislation is designed to diversify the state’s holdings, provide a hedge against inflation, and position Texas at the forefront of embracing decentralized financial technology.

The bill includes provisions for the strategic acquisition of Bitcoin over time, with proper oversight mechanisms to ensure responsible management of these digital assets. While primarily focused on Bitcoin, the legislation also contains a pathway for including other cryptocurrencies that maintain a market capitalization of at least $500 billion for a continuous period of 24 months.

This qualification period was recently amended during the legislative process, having been extended from the initially proposed 12 months to a more stringent 24-month requirement. This change makes it significantly more difficult for alternative cryptocurrencies to qualify for inclusion in the state reserve.

Also Read: Texas Bitcoin Reserve Bill Heads to Second House Reading, Signals Growing American Bitcoin Adoption

Bipartisan Support and Timeline

The strong bipartisan vote of 105-23 demonstrates broad support for the initiative across party lines, reflecting Texas’s ongoing commitment to positioning itself as a crypto-friendly jurisdiction. The state has already attracted significant cryptocurrency mining operations due to its relatively low energy costs and supportive regulatory environment.

Time is now a critical factor for the bill’s final approval. The Texas legislative session is scheduled to end on June 2, 2025, giving lawmakers a narrow window to complete the final vote. However, given the strong support shown in the second reading, observers expect the third reading to pass with similar backing.

Governor Abbott’s Likely Support

Governor Greg Abbott, a long-time supporter of Bitcoin and blockchain technology, is widely expected to sign the bill into law if it reaches his desk. Abbott has previously voiced support for cryptocurrency initiatives and has worked to position Texas as a leader in digital asset innovation.

“With bipartisan votes and gubernatorial support, Texas’s Bitcoin Reserve seems very likely,” noted Landon Manning, a journalist covering the development. “However, the crypto industry has learned not to take anything for granted despite optimistic signals.”

National Context and Precedent

Texas’s move follows similar initiatives in other states, with New Hampshire being the first to successfully establish a Bitcoin reserve. Since President Trump endorsed the concept following his inauguration in January 2025, several states have pursued their own local Bitcoin reserves.

Lieutenant Governor Dan Patrick had identified the Bitcoin Reserve as a top priority early in the year, and the bill has progressed steadily through committee and the Senate before reaching its current stage in the House.

If signed into law, Texas would join a select few states that have successfully implemented cryptocurrency reserves, potentially setting a precedent for others to follow. The development would further cement Texas’s reputation as one of the most crypto-friendly states in the nation.

Final Steps

While the bill’s advancement represents significant progress, proponents remain cautious, noting that similar initiatives in other states like Arizona and Florida have faced unexpected obstacles. In Arizona, for example, the governor signed a law allowing the state to hold Bitcoin but vetoed two bills that would have enabled actual purchases.

The final vote on SB 21 could take place as early as this week, with stakeholders closely watching what could become a landmark moment in the integration of cryptocurrency into public finance.

As one crypto policy watchdog noted, “The crypto industry’s political support remains very strong,” suggesting that despite challenges, the momentum behind governmental adoption of digital assets continues to build.

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