Texas lawmakers have taken a historic step toward establishing a state-level Bitcoin strategic reserve, positioning the state as a leader in digital asset adoption. On May 21, the Texas House of Representatives passed SB 21 with a 101-42 vote, marking a pivotal moment in the cryptocurrency legislative landscape.
Key Provisions of the Bitcoin Reserve Bill
Strategic BTC Purchases
The bill authorizes the State Comptroller to:
- Use fiscal surplus funds to acquire Bitcoin (BTC)
- Adhere to reporting rules identical to those governing Texas’ gold bullion reserves
- Store BTC within Texas or in U.S. jurisdictions recognizing Bitcoin as legal property
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Legislative Journey
- March 5: Texas Senate approved an earlier version (25-5 vote)
- May 21: House passed amended bill (101-42)
Next Steps:
- Senate must reconfirm the House amendments
- Governor Greg Abbott has 20 days to sign/veto or let it auto-enact
Why This Matters for Texas
Financial Sovereignty
- BTC as a hedge: Protects purchasing power against monetary instability
- Quarterly disclosures: Acquisition dates, quantities, and cost basis will be public
- Revenue potential: Includes studying Lightning Network for state fee collections
National Precedence
Texas would join:
- Arizona
- New Hampshire
...as the third state with a public Bitcoin reserve framework.
Implementation Timeline
| Milestone | Deadline |
|---|---|
| Governor’s decision | 20 days post-delivery |
| Comptroller procurement guidelines | Published in Texas Register |
| Storage contracts finalized | Before BTC purchases begin |
| Lightning Network study report | January 2026 |
FAQs: Texas Bitcoin Reserve Bill
Q: How will Bitcoin purchases be funded?
A: Excess state revenue (no dollar cap specified), following gold reserve protocols.
Q: Where will the BTC be stored?
A: In Texas-based qualified custodians or compliant U.S. jurisdictions.
Q: What’s the political outlook?
A: Bipartisan support suggests high approval likelihood; Governor Abbott has previously endorsed pro-crypto policies.
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The Bigger Picture
This legislation aligns with Texas’ broader blockchain-friendly initiatives, including:
- Mining incentives with renewable energy
- Regulatory sandboxes for fintech innovation
- Tax exemptions for crypto transactions
By institutionalizing Bitcoin reserves, Texas reinforces its reputation as a cryptocurrency hub, blending fiscal conservatism with technological pragmatism.