Texas Senate Approves Historic Bitcoin Reserve Bill, Paving the Way for a $500 Million Annual Crypto Investment | by Joshua Moroles | The Capital | Mar, 2025

Austin, Texas — March 9, 2025 — In a groundbreaking move, the Texas Senate has passed Senate Bill 21 (SB 21), establishing the first government-managed cryptocurrency reserve in U.S. history. Dubbed the Texas Bitcoin Reserve, this landmark legislation authorizes the state to invest up to $500 million in Bitcoin (BTC) and other cryptocurrencies with a market capitalization of at least $500 billion annually. The bill, awaiting approval from the Texas House and the Governor’s signature, positions Texas as a global leader in digital finance and cryptocurrency adoption.

SB 21, introduced by State Senator Charles Schwertner (R-Georgetown), creates a state-level strategic reserve for digital assets, administered by the Texas Comptroller. The reserve will initially focus on Bitcoin but also allows for the inclusion of other major cryptocurrencies, reflecting a broader approach to digital asset investment. Proponents argue that Bitcoin, often referred to as “digital gold,” serves as a hedge against inflation and economic instability, similar to traditional gold reserves.

Under the bill, Texas plans to allocate $500 million annually to purchase Bitcoin and other eligible cryptocurrencies. The reserve will be managed with strict security protocols, including the use of cold storage — an offline method that safeguards digital assets from hacking or unauthorized access. An advisory committee, composed of the Texas Comptroller and cryptocurrency investment experts, will provide guidance on managing the reserve, mitigating risks, and optimizing returns.

The legislation also mandates biennial reports to ensure transparency, detailing the reserve’s holdings, financial status, and management actions. This accountability measure aims to address concerns about Bitcoin’s volatility and regulatory uncertainties while fostering public trust in the state’s crypto strategy.

Texas has emerged as a hub for cryptocurrency and blockchain innovation, attracting major Bitcoin mining operations and financial technology companies. The state’s low energy costs, business-friendly environment, and supportive regulatory framework have made it a natural fit for crypto adoption. Lt. Gov. Dan Patrick hailed the passage of SB 21 as a “bold step” to solidify Texas’ leadership in the digital age, citing President Donald Trump’s vision to make the United States the “cryptocurrency capital of the world.”

The move aligns with a growing trend of U.S. states exploring Bitcoin reserves. According to Bitcoin Laws, 32 strategic reserve bills have been introduced across 24 states, but Texas is now poised to be the first to establish such a reserve if the bill becomes law. Wyoming Senator Cynthia Lummis, a vocal advocate for a federal Bitcoin reserve, has suggested that states like Texas are likely to adopt crypto reserves before the federal government due to fewer bureaucratic hurdles.

The passage of SB 21 has sparked excitement in the cryptocurrency community, with posts on X (formerly Twitter) reflecting widespread enthusiasm. Max Brown (@MaxBrownBTC) broke the news on March 9, 2025, stating, “TEXAS STATE JUST APPROVED THE HISTORIC BITCOIN STATE RESERVE BILL ESTABLISHING A CRYPTO RESERVE. THEY PLAN TO BUY $500 MILLION BTC EVERY YEAR.” Other users, including Ash Crypto and @rovercrc, echoed the sentiment, describing the move as “history being made” and “GIGA bullish” for Bitcoin.

However, the bill has faced criticism from skeptics concerned about Bitcoin’s volatility and the lack of regulatory clarity surrounding cryptocurrencies. Critics argue that exposing state funds to such fluctuations could jeopardize public finances, especially compared to more stable investments like government bonds. Federal agencies, including the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS), continue to debate how digital assets should be classified and taxed, adding to the uncertainty.

Despite these concerns, supporters believe Texas’s strategic investment could diversify the state’s portfolio, protect against inflation, and position it as a pioneer in the future of finance. If signed into law, the Texas Bitcoin Reserve could inspire other states to follow suit, potentially reshaping the U.S. financial landscape.

SB 21 must now pass the Texas House of Representatives and receive the signature of Governor Greg Abbott to become law. If approved, the Texas Comptroller will assemble the advisory committee, establish security measures, and begin implementing the investment strategy. A public hearing in the Senate Business and Commerce Committee, chaired by Schwertner, is widely expected to precede full legislative consideration.

If you have been a hodler of BTC, congratulations! We have been able to successfully front-run major institutions, the United States, States, Nation States, Millionaires, and Billionaires for the first time in a very long time. Stay bullish!