Texas has moved a step closer to establishing a Bitcoin reserve, with the Senate approving a bill that seeks to invest public funds in BTC. After a March 6 voting session, the Texas Senate passed the Bitcoin strategic reserve bill (SB-21) with a 25-5 vote . The proposal now moves to the state House, which must act on it by May 24. While the timeline allows for weeks of deliberation, some lawmakers may push to “expedite the process,” according to Satoshi Act Fund founder Dennis Porter, potentially bringing it to the governor’s desk sooner than expected. Dennis Porter @Dennis_Porter_ · Follow I just got a call from someone incredibly important in Texas. I was told the House intends to move very rapidly in Texas to pass ‘Strategic Bitcoin Reserve’. We could have a ‘Strategic Bitcoin Reserve’ law very soon! Do not blink! 1:45 AM · Mar 7, 2025 2.5K Reply Copy link Read 132 replies If signed into law, Texas will become the first US state to hold Bitcoin as part of its financial reserves. SB-21 was first introduced in January by Texas State Senator Charles Schwertner as a Bitcoin-only bill. However, in February, lawmakers revised it to include broader language, opening the door for other digital assets. The changes followed US President Donald Trump’s executive order on Jan. 23, which called for a commission to study the feasibility of a “ digital asset stockpile .” What is SB-21? According to the bill, Texas would establish the Texas Strategic Bitcoin Reserve, a special fund separate from the state treasury, overseen by the comptroller. The reserve would be used to acquire, hold, and manage Bitcoin and potentially other digital assets as part of the state’s financial strategy. Various sources, including state-allocated funds, investment earnings, private donations, and proceeds from Bitcoin-related rewards such as airdrops and blockchain forks, would fund the reserve. The bill also allows the comptroller to invest, sell, or manage the state’s Bitcoin holdings with the discretion of a “prudent investor.” A key provision in the bill requires that any cryptocurrency acquired must have an average market capitalisation of at least $500 billion over the past 12 months, effectively limiting investments to established assets like Bitcoin. The legislation also enables voluntary crypto donations from individuals or organisations, though the state reserves the right to reject any donation at its discretion. For now, the bill awaits debate in the Texas House. If it clears that hurdle, it will head to Governor Greg Abbott, a known supporter of Bitcoin and blockchain innovation. The bill is set to go into effect on September 1, 2025, if passed. According to Senator Schwertner, Bitcoin represents a “valuable, scarce asset” that could help Texas shore up its balance sheet. He argued that states no longer rely on “stacks of dollar bills in safes” like in the past but instead must look toward digital assets. Bitcoin reserve plans making steady progress Texas becomes the eighth state to move a crypto reserve bill to the House and joins North Carolina, Oklahoma, Texas, Utah, Arizona, and New Hampshire. Texas’s bill was passed a day after New Hampshire’s House Commerce and Consumer Affairs Committee approved its crypto reserve bill with strong support. Meanwhile, on March 7, Trump signed an executive order establishing both a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” The post Texas Senate approves bill to create Bitcoin reserve: Here’s what it means appeared first on Invezz
