KEY FACTS: Texas lawmakers have reintroduced Senate Bill 21 (SB 21) to establish a Strategic Bitcoin Reserve, expanding the state’s ability to buy, sell, and manage Bitcoin and other cryptocurrencies that maintain a market capitalization of at least $500 billion. This bill, championed by Senator Charles Schwertner and prioritized by Lieutenant Governor Dan Patrick, builds on the earlier SB 778 by granting the state comptroller authority over crypto investments without an annual purchase limit. Industry leaders view the bill as a bullish move, positioning Texas as a leader in state-level cryptocurrency adoption.
Source: Seal of Texas
Texas Lawmakers Refile Bitcoin Reserve Bill, Expanding Scope for More Crypto
Texas lawmakers have reintroduced a bill to establish a Strategic Bitcoin Reserve for the state, expanding its scope to include other cryptocurrencies with a market capitalization of at least $500 billion. Texas State Senator Charles Schwertner announced the filing of Senate Bill 21 (SB 21) on February 12, 2025.
Sec.A403.704.AAMARKET CAPITALIZATION REQUIREMENT. Bitcoin or other cryptocurrency purchased using money in the reserve or received by the reserve must have an average market capitalization of at least $500 billion over the most recent 12-month period.
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Senator Schwertner emphasized the transformative potential of this legislation, stating, "SB 21 would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom." He also thanked Lieutenant Governor Dan Patrick for prioritizing the bill among the Senate's top 40 initiatives.
Thank you to Lt. Governor @DanPatrick for designating my bill to establish the Texas Strategic Bitcoin Reserve as one of the Senate’s top 40 priority bills. SB 21 would make our state the first to establish a Strategic Bitcoin Reserve & drive innovation, growth, & financial freedom! #txlege
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SB 21 serves as a successor to an earlier proposal, Senate Bill 778 (SB 778), introduced by Senator Schwertner in mid-January 2025. While SB 778 focused solely on allowing the state to purchase and hold Bitcoin (BTC) as a strategic asset, SB 21 expands the scope. The new bill authorizes the state to actively buy, sell, and manage various cryptocurrencies, provided they meet specific criteria. Notably, eligible digital assets must have maintained a market capitalization of at least $500 billion over the past twelve months—a benchmark currently met only by Bitcoin.
SB 21 outlines the establishment of the Texas Strategic Bitcoin Reserve as an investment vehicle aimed at enhancing the state's financial security and economic resilience. The bill grants the state's comptroller of public accounts the authority to oversee investments in qualifying cryptocurrencies, thereby entrusting financial experts with the management of these assets. This approach marks a departure from SB 778, which placed control in the hands of state legislators and imposed stricter regulations regarding security, oversight, and funding.
The reintroduction of the bill has garnered attention from industry stakeholders. Pierre Rochard, Vice President of Research at Riot Platforms, described the new legislative text as "very bullish." He highlighted the removal of the previous annual purchasing limit of $500 million, noting that the legislature now has the discretion to appropriate funds as it deems fit for Bitcoin acquisitions.
Texas is not alone in its pursuit of integrating cryptocurrency into state financial frameworks. As of now, 19 U.S. states have proposed similar bills. States such as Arizona and Utah have advanced their legislation beyond the House committee level, signaling a broader national trend toward the adoption of digital assets in governmental financial strategies.
Most recently, North Carolina introduced legislation to permit state investments in Bitcoin exchange-traded products. Conversely, North Dakota has opted to reject proposals related to crypto investments, illustrating the diverse approaches states are taking in response to the evolving financial landscape.
The passage of SB 21 would position Texas as a pioneer in state-level cryptocurrency investment, setting a precedent for other states to follow. The establishment of a Strategic Bitcoin Reserve will help Texas to leverage the benefits of cryptocurrency to bolster its financial standing and promote economic growth.
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