Texas is on the cusp of becoming the first major U.S. economy to actively hold Bitcoin as part of its state reserves, following the passage of the Strategic Bitcoin Reserve and Investment Act (SB 21) in the House of Representatives. The bill, which cleared the chamber in a 101-42 vote, now heads to Governor Greg Abbott for final approval.
If signed, Texas will join the ranks of New Hampshire and potentially Arizona in pioneering government-level Bitcoin adoption, signaling a major milestone in crypto’s integration into traditional public finance.
Bitcoin: From Borderless Asset to State-Backed Reserve
Under SB 21, the Texas comptroller would be authorized to allocate state funds into Bitcoin and other digital assets with a minimum $500 billion market capitalization over the past 12 months—a threshold only Bitcoin currently meets. The legislation would also establish a formal Bitcoin reserve under the state treasury, a bold step toward financial diversification using decentralized assets.
Senator Charles Schwertner, who sponsored the bill, and Representative Giovanni Capriglione, who championed it in the House, both touted the measure as essential for future-proofing Texas’s financial infrastructure.
“Texas has always been a frontier of innovation. Embracing Bitcoin strengthens that legacy while giving the state new tools to hedge against inflation and monetary instability,” said Capriglione.
Crypto-Friendly Roots Run Deep in Texas
This move is consistent with Texas’s crypto-forward posture in recent years. The Lone Star State has already positioned itself as a U.S. hub for Bitcoin mining, thanks to favorable energy rates and regulatory support. Governor Abbott himself has voiced strong support for digital assets, having previously accepted campaign contributions in Bitcoin.
With a $2.7 trillion economy—the eighth largest in the world if Texas were a nation—the state’s decision to invest in Bitcoin carries weight far beyond state borders.
National Resistance, Local Momentum
While states like Arizona and Montana recently vetoed similar proposals over concerns about volatility, Texas lawmakers are betting on long-term value and Bitcoin’s rising institutional acceptance. The legislation’s passage also coincides with a bullish crypto cycle, as Bitcoin recently crossed $109,000.
Analysts suggest that if Texas goes ahead, it could embolden other states to follow suit, especially as digital assets become more intertwined with global finance.
Awaiting the Governor’s Signature
The final step lies with Governor Abbott. His signature would mark a historic leap—not just for Texas, but for the mainstream adoption of Bitcoin within U.S. public financial systems.
Whether Texas becomes the “MicroStrategy of states” remains to be seen, but its bold positioning could make it a blueprint for how governments approach digital reserves in the years ahead.
