Texas Moves Closer to Becoming First State to Hold Bitcoin

Top 20 Crypto to Buy in May 2025Texas is making headlines again, and this time it’s not about energy or barbecue. The state’s lawmakers have voted to create a strategic Bitcoin reserve, setting the stage for Texas to become the first in the U.S. to officially hold Bitcoin as part of its financial strategy. The bill just passed through the House, and now it’s waiting on one final stamp of approval, Governor Greg Abbott.

What’s in the Bill?

The bill, known as Senate Bill 21 (SB 21), was approved by the Texas House of Representatives with a vote of 101 to 42. It had already passed the Senate earlier this year. The proposal lays out a plan to create the Texas Bullion Depository Reserve Fund, which would allow the state to invest in Bitcoin and other digital assets.

HISTORY: TEXAS passes Strategic Bitcoin Reserve bill SB 21 pic.twitter.com/6oZBbHjEgA

— Bitcoin Laws (@Bitcoin_Laws) May 21, 2025

The fund would be overseen by the state comptroller and kept separate from Texas’ main treasury. The idea is to build a pool of Bitcoin that could serve as a hedge during tough economic times. And it’s not a free-for-all, the bill limits the assets to ones with a 24-month average market cap of at least $500 billion. That’s a long way of saying: it’s mostly about Bitcoin.

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How It Gets Funded

Funding for the Bitcoin reserve could come from a few different places. The state legislature could allocate money directly, and Texans themselves could contribute through private donations. There’s a catch though, only Texas residents would be allowed to donate. That part was actually taken out of the bill at one point, but lawmakers later put it back in.

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The bill also includes a system for keeping lawmakers and the public in the loop. The comptroller would need to submit a report every two years detailing what assets the reserve holds, how they’re being managed, and whether any of it has been sold or reallocated. An advisory committee would help guide the strategy.

Why Texas Wants a Bitcoin Reserve

Lawmakers behind the bill say this is about preparing for a future where Bitcoin and other digital assets play a bigger role in finance. Representative Giovanni Capriglione, one of the bill’s sponsors, has framed it as a way to give Texas more control over its financial stability.

Texas already has a reputation as a Bitcoin-friendly state. It’s home to large-scale mining operations and has generally welcomed crypto companies with open arms. Adding Bitcoin to the state’s own balance sheet might feel like the next logical step.

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Other Governments Are Doing It Too

Texas isn’t alone in thinking about Bitcoin this way. New Hampshire passed its own Bitcoin reserve legislation earlier this year. At the federal level, President Trump signed an executive order in March that created a Strategic Bitcoin Reserve using coins seized in criminal investigations.

So while Texas might not be the first government entity to hold Bitcoin, it would definitely be the biggest U.S. state to take the plunge.

What Happens Next?

Now it’s up to Governor Greg Abbott. He has 20 days to either sign the bill into law or veto it. While he hasn’t said anything specific about SB 21, Abbott has supported Bitcoin and blockchain innovation in the past. It makes many people think he’s likely to give it the green light.

If he does, Texas won’t just be mining Bitcoin. It’ll be holding it too.

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Key Takeaways

Texas is on track to become the first U.S. state to hold Bitcoin, with a bill awaiting final approval from Governor Greg Abbott.

Senate Bill 21 would create a state-managed Bitcoin reserve fund, overseen by the comptroller and funded by state allocations or private donations.

Only digital assets with a 24-month average market cap of $500 billion or more, effectively just Bitcoin, would qualify for inclusion in the reserve.

The bill includes transparency requirements, mandating biannual reports on fund holdings and performance, along with guidance from an advisory committee.

Texas joins a growing list of governments exploring Bitcoin reserves. This signals a broader shift toward integrating crypto into public finance strategies.

The post Texas Moves Closer to Becoming First State to Hold Bitcoin appeared first on 99Bitcoins.

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