Texas Becomes First State to Create Bitcoin Reserve with SB 21

The Texas Senate has passed Senate Bill 21 (SB 21), allowing the state to invest public funds in Bitcoin and other digital assets. The bill, which received bipartisan support, makes Texas the first U.S. state to establish a Bitcoin reserve.

Texas Bitcoin Reserve management would fall under the management of the Texas Comptroller, according to SB 21, which was introduced by Senator Charles Schwertner. It allows the state to store up to Bitcoin and other cryptocurrencies with a total market capitalization of more than $500 billion. State appropriations will fund the reserve.

Texas Lieutenant Governor Dan Patrick emphasized the state’s push for digital asset adoption. He stated:

“Bitcoin is often compared to digital gold, and with its fixed supply and decentralized structure, it stands as a key asset for Texas moving forward.”

Strategic Bitcoin Reserve Advisory Committee to Oversee Fund

To manage the reserve, SB 21 establishes the Strategic Bitcoin Reserve Advisory Committee. This committee will guide reserve management and publish a biennial report detailing the state’s cryptocurrency holdings. The bill allows flexibility to adjust the reserve’s holdings based on market conditions.

While other states have explored similar measures, Texas is the first to pass legislation establishing a state-controlled Bitcoin reserve. At least a dozen states have proposed digital asset investment bills, but many faced legislative obstacles.

New Hampshire and Utah Advance Similar Proposals

New Hampshire has also moved forward with a digital asset investment plan. On March 6, a state house committee approved House Bill 302, which would allow up to 5% of public funds to be allocated to Bitcoin and precious metals. The bill will now advance for further legislative review.

Utah is also nearing a decision on a related bill. Lawmakers in the state have approved a measure that would invest public funds in Bitcoin. However, the bill requires final approval before the legislative session closes this week. If passed, it will be sent to Governor Spencer Cox, who has supported blockchain-related policies in the past.

Federal Discussion on Crypto Reserves Continues

Recent federal discussions on digital asset reserves have prompted the push for Bitcoin adoption at the state level. During the weekend, President Donald Trump confirmed that Bitcoin would be part of the US strategic crypto reserve. He also included other cryptocurrencies such as XRP, Solana (SOL), Cardano (ADA), and Ethereum (ETH) although providing details about how a reserve like that would work, are still unclear.

Some industry leaders have expressed doubts about including multiple cryptocurrencies in a national reserve. They argue that Bitcoin is the only digital asset comparable to traditional reserves like gold. The government has not yet outlined how it would acquire and manage these digital assets.

Texas, New Hampshire, and Utah are among the states pushing forward with crypto investment plans, following momentum from the federal discussion on digital asset reserves.

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