Key Takeaways:
Texas has become the second U.S. state to legalize a Bitcoin reserve, following New Hampshire, and is awaiting the governor’s endorsement.
Senate Bill 21 (SB 21) empowers the state comptroller to purchase only cryptocurrencies with a market capitalization exceeding $500 billion.
Currently, corporate Bitcoin holdings surpass government reserves, but Texas’s reserve could alter that balance significantly if it expands.
On May 21, Texas legislators successfully passed Senate Bill 21 (SB 21). This bipartisan legislation lays the groundwork for establishing a state Bitcoin reserve and is now waiting for final approval from Governor Greg Abbott.
Texas House passes SB 21 to establish a Strategic #Bitcoin Reserve.
The bill cleared its final vote 101-42. pic.twitter.com/6li1OaumPl
— TFTC (@TFTC21) May 21, 2025
The bill garnered considerable support in the House, passing with a vote of 105-23 in its second reading and 101-42 in its third. This overwhelming approval suggests that Governor Abbott is likely to sign it into law.
If enacted, Texas will join New Hampshire as the second U.S. state to hold a Bitcoin reserve. Abbott has been a long-time advocate for cryptocurrency, accepting crypto donations for his campaigns since 2014, which aligns with his vision of positioning Texas as the “crypto capital” of the nation. Observers are optimistic about his approval.
How SB 21 Reshapes Texas’s Financial Future with Bitcoin
SB 21 grants the state comptroller the authority to buy and hold Bitcoin as well as other cryptocurrencies with a maintained market cap over $500 billion for 12 consecutive months, a threshold that Bitcoin currently satisfies.
The comptroller will oversee the reserve, making investments with surplus funds and utilizing earnings from the holdings to cover administrative costs. However, the Legislative Budget Board has stated that the potential scale of the reserve and its financial impact remains uncertain.
Representative Giovanni Capriglione, a proponent of the bill in the House, described the vote as “a pivotal moment in securing Texas’s leadership with a modern store of value for future promise.”
Supporters contend that incorporating Bitcoin into the state treasury will diversify assets and reinforce Texas’s commitment to blockchain innovation.
With a robust $2.7 trillion economy and a rapidly expanding Bitcoin mining sector, Texas is poised to become the largest government entity globally to hold Bitcoin.
The Crypto Divide: Which States Are Leading and Why Others Are Hesitant
The United States finds itself divided over Bitcoin, with some states moving eagerly to adopt it while others display considerable trepidation. On May 6, New Hampshire made history by becoming the first state to allow its treasury to hold Bitcoin. Texas now aims to follow suit.
North Carolina is also exploring similar measures, with nearly identical proposals in both the House and Senate awaiting votes, while Wyoming’s lawmakers are contemplating legislation that would grant their treasurer the explicit authority to purchase Bitcoin. Yet, other states remain resistant to the push for cryptocurrency.
New Hampshire just became the first U.S. state to legally adopt Bitcoin as a strategic reserve asset.
HB 302 lets the treasurer park up to 5 % in Bitcoin.
Game on. pic.twitter.com/ACabIV3zxe
— Swan (@Swan) May 6, 2025
In Arizona, a proposal for a Bitcoin reserve was rejected by the governor, while Florida’s legislature has withdrawn two similar bills. Montana has also resisted, citing concerns over Bitcoin’s volatile price movements.
A total of 47 Bitcoin-related bills are currently under consideration across 26 states, with about half actively engaging in legislative discussions. In Washington, 13 proposals are being discussed that could establish a national Bitcoin vault containing seized digital currencies.
As treasurers and officials weigh issues such as custody and compliance, alongside the inherent risks tied to price volatility, the conversation surrounding the adoption of Bitcoin as a strategic asset has shifted from fringe discussions to a serious fiscal consideration.
Bitcoin Reserve
— Mayer Mizrachi (@Mayer) May 16, 2025
In international developments, Panama City Mayor Mayer Mizrachi hinted at plans for a municipal Bitcoin reserve following talks with advisers from El Salvador, showcasing the growing global interest in Bitcoin reserves.
Bitcoin’s Biggest Buyers: Corporations vs. Governments—Who’s Winning?
Kyiv is also moving forward with its own Bitcoin reserve plans, with Member of Parliament Yaroslav Zhelezniak announcing that a draft bill to establish a state Bitcoin reserve is nearing completion. The initiative, backed by crypto exchange Binance, aims to bolster the nation’s financial resilience amid ongoing conflict with Russia.
Concurrently, corporate entities are aggressively acquiring Bitcoin at unprecedented rates.
Strategy, a leader in corporate Bitcoin strategies, has recently increased its fundraising targets to $84 billion, planning fresh equity and debt sales to grow their cryptocurrency treasury significantly. Their latest acquisition included 13,390 BTC for approximately $1.34 billion earlier this month.
JUST IN: Michael Saylor said Strategy is doubling their fundraising to raise $84 billion to buy more #Bitcoin pic.twitter.com/NPg0E5GLF2
— Bitcoin Magazine (@BitcoinMagazine) May 1, 2025
Earlier, Japan’s Metaplanet committed ¥18.4 billion ($126 million) to obtain 1,241 BTC during the same timeframe, raising its total holdings to 6,796 Bitcoin.
This trend reflects a broader movement, with publicly traded companies having boosted their cumulative Bitcoin reserves by 16.1% in the first quarter of 2025, bringing corporate holdings to around 688,000 BTC, which constitutes approximately 3.3% of the overall supply.
Governments are gradually catching up, with the U.S. leading in Bitcoin holdings. Global governments together are estimated to control between 463,741 and 527,737 BTC, making up 2.2% to 2.5% of the total supply.
Frequently Asked Questions(FAQs)
Could Texas’s Bitcoin reserve encounter federal regulatory challenges?
Federal agencies may contest it. The SEC could argue Bitcoin is a security, while the Treasury might express concerns related to monetary policy. Nevertheless, states typically administer their reserves, potentially setting the stage for a conflict over financial sovereignty.
Does Texas’s initiative put pressure on other states to expedite crypto adoption?
Certainly. Texas’s move has raised the stakes. States that are welcoming to cryptocurrency will likely rush to keep pace, while skeptics may entrench their positions, causing a domino effect that could redefine state-level crypto policy in the coming months.
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