TLDR
- Bill passed Senate by a vote of 25 to 5.
- Reserve will only invest in cryptocurrencies over $500 billion market cap.
- Texas aims to lead in cryptocurrency adoption and management.
The Texas Bitcoin Reserve Bill, known as SB 21, has cleared its final hurdle. On May 31, 2025, it passed the Senate’s final revision. This legislation is now on its way to Governor Greg Abbott’s desk for final approval. The bill aims to establish a state-managed Bitcoin reserve, which would allow Texas to purchase, hold, and manage cryptocurrency using public funds.
This move positions Texas as a leader in cryptocurrency adoption. The bill’s main proponent, Lieutenant Governor Dan Patrick, emphasized the importance of this initiative. After the initial Senate approval on March 6, 2025, Patrick stated, “I promised to make a Texas Bitcoin Reserve a priority to solidify Texas’ leadership in the digital age.”
Senate and House Voting Details
Senator Charles Schwertner sponsored the bill, which received initial approval in the Texas Senate by a vote of 25 to 5 on March 6. The House followed with its approval on May 22, 2025, with a vote count of 101 to 42. The bill has now completed its legislative journey with these final revisions.
The new Texas Strategic Bitcoin Reserve will be administered by the Texas Comptroller of Public Accounts. This specialized fund will operate outside the state treasury. It will be funded through legislative appropriations, dedicated revenue streams, investment proceeds, and voluntary cryptocurrency donations.
Criteria and Oversight for Cryptocurrency Investments
The bill stipulates that only cryptocurrencies with an average market capitalization of at least $500 billion over the past 12 months are eligible for investment. Under current market conditions, this essentially limits the reserve’s holdings to Bitcoin. To provide guidance, a Strategic Bitcoin Reserve Advisory Committee will be established, which will produce a biennial report detailing the reserve’s assets.
Lt. Gov. Patrick highlighted broader support for such initiatives, aligning them with former President Trump’s goals to make the U.S. a cryptocurrency leader. Patrick stated this aligns with making the United States the “cryptocurrency capital of the world.”
Market Reactions and Insights
Crypto Rover commented on Twitter, highlighting this initiative as a “major bullish signal for the crypto market.” Analysts suggest it may increase institutional demand for Bitcoin and serve as a precedent for future crypto adoption in state treasuries.
Bitcoin, currently meeting the $500 billion market cap criterion outlined in the bill, stands as the primary asset affected. While the exact funding allocation for Bitcoin purchases isn’t specified, the formation of the reserve indicates significant state-level institutional involvement.
More information about Texas Senate Bill 21 and the text of similar bills are accessible for further specifics and legislative context.
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