Texas has reintroduced a bill to establish a Strategic Bitcoin Reserve, marking a significant step toward incorporating bitcoin into its financial structure. SB 21 not only underlines the state’s commitment to Bitcoin but also allows for investments in other cryptocurrencies that meet certain conditions.
Senator Charles Schwertner, who filed SB 21 on February 12, emphasized the bill’s importance, saying it places Texas as a leader in financial innovation and digital asset adoption. Lieutenant Governor Dan Patrick has also prioritized the initiative, citing its potential impact on the state’s economic future.
SB 21 expands on a previous bill, SB 778, introduced in January that limited the state’s investment options to Bitcoin only. Unlike its predecessor, SB 21 enables investments in cryptocurrencies with a market value of at least $500 billion over the previous year. Currently, Bitcoin is the only digital asset that meets this condition.
A fundamental change in the new measure is the transfer in financial control. Unlike SB 778, which placed governance in the hands of state legislators with rigorous security and funding requirements, SB 21 gives financial experts more control over reserve management. This reform aims to improve the state’s ability to strategically purchase, trade, and manage bitcoin holdings, thereby ensuring economic stability and financial resiliency.
One of SB 21’s most significant changes is the elimination of the former $500 million yearly purchase cap, which allows the legislature to disburse money without a defined upper limit. Industry heavyweights, including Riot Platforms’ vice president of research, Pierre Rochard, have hailed the move as a significant step toward increased financial flexibility and investment potential.
Texas is not alone in considering cryptocurrency legislation. Nineteen additional states have submitted identical legislation, with Arizona and Utah making significant progress beyond the House committee level. Meanwhile, North Carolina recently proposed legislation allowing state investments in Bitcoin exchange-traded funds, while North Dakota has decided not to pursue crypto-related investment rules.
If SB 21 passes, Texas will become the first state to formally establish a Bitcoin reserve, perhaps driving further state-level cryptocurrency adoption. The bill’s advancement indicates the rising acceptance of digital assets as viable financial instruments in government finance policies.
