Key Takeaways
- Texas Senate passed SB-21, a Bitcoin reserve bill, in a 25-5 vote.
- The bill, if signed by the governor, would make Texas the first U.S. state with a Bitcoin reserve.
- SB-21 was amended in February to include other digital assets after Trump's executive order.
The Texas Senate passed SB-21, a bill to create a Texas Strategic Bitcoin Reserve, in a 25-5 vote on March 6 after extensive debate on the state Senate floor.
The legislation, introduced by State Senator Charles Schwertner, would allow Texas to allocate part of its financial reserves into Bitcoin, positioning it as a hedge against inflation and economic instability.
Schwertner’s argument
Schwertner argued:
We don’t have stacks of dollar bills and safes like we did in medieval times. What we have is digital currency.
He also pointed to concerns about monetary inflation and central bank interventions, suggesting that Bitcoin could help Texas preserve its financial strength amid a weakening U.S. dollar.
Investment authorization
SB-21 would authorize Texas to invest in Bitcoin and other eligible digital assets, with assets stored using qualified custodians or cold storage methods.
Proponents of the bill compared Bitcoin to gold, emphasizing its scarcity and resistance to manipulation.
Concerns & reassurances
While some lawmakers expressed concerns over Bitcoin’s volatility, supporters reassured them that Bitcoin is not intended to replace the U.S. dollar but to complement Texas’ existing financial strategy.
Amendments & federal context
Originally introduced as a Bitcoin-only bill in January 2025, SB-21 was amended in February to include other digital assets.
The revisions followed President Donald Trump’s January 23 executive order, which directed a federal commission to explore the feasibility of a national digital asset stockpile that could include multiple cryptocurrencies.
Next steps for the bill
Now that the bill has passed the Senate, it must be signed by the Texas governor to become law.
If enacted, Texas will be the first state in the U.S. to establish a Bitcoin reserve, setting a precedent for other states considering similar policies.
Broader implications
According to Bitcoin Laws, 32 Bitcoin reserve bills have been introduced across 24 U.S. states.
Wyoming Senator Cynthia Lummis, a strong advocate for state-level Bitcoin adoption, has stated that states are likely to embrace Bitcoin reserves before the federal government, which faces bureaucratic obstacles.
Texas’ move could encourage other states to accelerate their own Bitcoin reserve plans, reinforcing the asset’s role in U.S. financial strategy.
