Key Takeaways:
- The Texas Senate passed SB-21, a bill to establish a state-backed Bitcoin strategic reserve, in a 25-5 vote.
- If signed into law, Texas would be the first U.S. state to hold Bitcoin as a strategic asset, with storage in cold wallets for security.
- The bill, initially Bitcoin-only, was later amended to allow for other digital assets following federal discussions on a national crypto reserve.
The Texas Senate has approved Senate Bill 21 (SB-21), titled the Texas Strategic Bitcoin Reserve and Investment Act, with a 25-5 vote.
This legislation positions Texas as a leader in Bitcoin adoption, aiming to establish a state-backed Bitcoin reserve.
HISTORY: 🇺🇸 The exact moment Texas passed the Strategic Bitcoin Reserve legislation SB 21 in the Senate.
— Bitcoin Archive (@BTC_Archive) March 6, 2025
Texas is the 8th biggest economy in the world.
This would be like Italy, France, or India establishing a Bitcoin Reserve. pic.twitter.com/BpvE21bkRh
State Senator Charles Schwertner, the bill’s sponsor, argued that Bitcoin could strengthen Texas’ financial stability by serving as a scarce asset similar to gold and a hedge against inflation.
He also criticized excessive government money printing for devaluing the U.S. dollar.
If signed by the governor, Texas would become the first U.S. state to hold Bitcoin as a strategic reserve.
The bill mandates that all Bitcoin in the reserve be stored in cold storage, ensuring high security by keeping the digital assets offline and safe from unauthorized access.
Initially drafted as a Bitcoin-exclusive bill, it was later revised to allow for the possible inclusion of other digital assets, aligning with a federal push to explore digital asset reserves.
With 32 similar bills introduced across 24 states, Texas’ move could inspire other states to follow suit, solidifying Bitcoin’s role in public financial strategy.
The bill now awaits the governor’s approval to become law.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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