The Texas House of Representatives has passed Senate Bill 21 (SB 21) in a decisive 101-42 vote, advancing landmark legislation that would establish a strategic Bitcoin reserve for the Lone Star State. The bill now heads to Governor Greg Abbott’s desk, where he has 20 days to either sign it into law or veto the measure.
JUST IN: Texas Strategic Bitcoin Reserve bill SB21 officially PASSES and goes to Governors desk for final signature 🇺🇸 pic.twitter.com/8UMwxTHgg6
— Bitcoin Magazine (@BitcoinMagazine) May 21, 2025
 Breaking New Ground in State Cryptocurrency Policy
If signed into law, Texas would become the third U.S. state to formally establish a cryptocurrency reserve, following New Hampshire and Arizona. The legislation, officially titled the Texas Strategic Bitcoin Reserve and Investment Act, represents a significant step toward institutional cryptocurrency adoption at the state level.
The bill allows the state comptroller to invest in any cryptocurrency with a market cap above $500 billion over the previous 12-month period. Currently, Bitcoin is the only cryptocurrency meeting this threshold, effectively making it a Bitcoin-specific reserve program.
Bipartisan Support and Strategic Vision
State Representative Giovanni Capriglione presented the bill to the chamber, calling it a “pivotal moment in securing Texas’s leadership in the digital age with the passage of our strategic Bitcoin reserve”. The representative framed Bitcoin as a “modern asset with traditional properties for future promise.”
The bill had previously passed in the Texas Senate with a 25-5 vote on March 6, demonstrating broad legislative support across both chambers.
Also Read: Texas Strategic Bitcoin Reserve Bill Passes Second Reading with Strong Bipartisan Support
Economic Context and Rationale
Texas boasts the second-largest economy in the United States, with a gross domestic product of $2.7 trillion in 2024. Proponents argue that establishing a Bitcoin reserve would help preserve purchasing power amid inflation and potential monetary disruptions, positioning the cryptocurrency as a modern equivalent to gold in state financial planning.
The reserve would be funded through legislative appropriations, donations, and investment earnings, with third-party custodians handling secure storage to minimize direct state risk.
Implementation Framework
The legislation establishes several key operational parameters:
- Management: The Texas Comptroller would oversee the reserve
- Investment criteria: Only cryptocurrencies with sustained market capitalizations above $500 billion
- Custody requirements: Assets must be held in Texas or jurisdictions that treat Bitcoin as property
- Transparency measures: Quarterly reporting of acquisition dates, unit counts, and total costs
- Governance: Creation of an advisory committee and establishment of oversight rules
The comptroller must create procurement rules and publish them in the Texas Register before any Bitcoin purchases begin, with quarterly reporting requirements for transparency.
Also Read: Texas Bitcoin Reserve Bill Heads to Second House Reading, Signals Growing American Bitcoin Adoption
National Trend Toward Crypto Reserves
According to Bitcoin Laws, 47 strategic Bitcoin reserve bills have been introduced across 26 states, with 13 active bills at the federal level. However, the movement has faced mixed results nationwide.
Recent setbacks include Arizona Governor Katie Hobbs vetoing two crypto reserve bills on May 13, and Florida withdrawing two strategic Bitcoin reserve bills on May 6. Arizona’s governor cited “current volatility in cryptocurrency markets” as not making “a prudent fit for general fund dollars”.
JUST IN: Texas Strategic Bitcoin Reserve bill SB21 passes the second reading 🇺🇸 pic.twitter.com/qNqLYSvNP8
— Bitcoin Magazine (@BitcoinMagazine) May 20, 2025
Governor Abbott’s Position
Governor Abbott has expressed enthusiasm for cryptocurrency in the past and is expected to sign the bill into law. In a November 2024 social media post, Abbott praised Texas as “the home of crypto mining” and stated it “should become the crypto capital”. Additionally, Abbott has reportedly accepted Bitcoin donations to campaigns since 2014.
Controversial Donation Clause
One element drawing attention is a reinstated clause allowing private entities to donate cryptocurrency directly to the state’s reserve, which had been previously removed in committee due to concerns about regulatory capture and market distortion. The bill must return to the Senate for concurrence on this reinstated donation provision before reaching the governor’s desk.
Timeline and Next Steps
The bill would take effect immediately upon signing if it receives a two-thirds legislative majority, or on September 1, 2025, otherwise. The comptroller must present related findings to the House Appropriations Committee by January 2026.
If implemented successfully, the Texas Bitcoin reserve could influence broader market legitimacy and potentially impact Bitcoin’s supply dynamics. The legislation positions Texas at the forefront of a growing national conversation about cryptocurrency’s role in state financial planning and fiscal resilience.
The crypto community has celebrated the bill’s passage on social media, with related posts garnering hundreds of thousands of views as stakeholders await Governor Abbott’s final decision on this groundbreaking legislation.
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