Texas Senate Backs Bill to Create State-Managed Bitcoin and Crypto Fund

Texas is on track to become the first U.S. state to hold a strategic Bitcoin (BTC) reserve. The Texas Senate recently passed Senate Bill 21, also known as the Texas Strategic Bitcoin Reserve and Investment Act, with a 25-5 vote. The bill allows the state to invest in and manage Bitcoin and other digital assets with a market capitalization of at least $500 billion.

If signed into law, the Texas Bitcoin Reserve will operate as a separate fund outside the state treasury. According to SB 21, “The establishment of a strategic Bitcoin reserve serves the public purpose of providing enhanced financial security to residents of this state and providing a mechanism to receive donations of Bitcoin and other cryptocurrencies.”

The bill grants the state comptroller authority over the reserve, enabling them to acquire, trade, and manage digital assets.

Texas Aims to Lead in Digital Innovation

Lt. Gov. Dan Patrick has expressed strong support for the initiative, highlighting Texas’ ambitions in the cryptocurrency space. He stated, “President Trump has stated unequivocally that he intends to make the United States the cryptocurrency capital of the world. His visionary leadership on Bitcoin and digital assets has paved the way for rapid American innovation, and Texas is leading the way.”

Patrick also emphasized the importance of Bitcoin in securing Texas’ financial future. “I promised to make a Texas Bitcoin Reserve a priority to solidify Texas’ leadership in the digital age. Today, the Texas Senate delivered on that promise by passing SB 21 with both Republican and Democrat votes to create the Texas Bitcoin Reserve. Some have called Bitcoin ‘digital gold,’ and I believe its limited supply and decentralized nature make it a critical asset for Texas’ future.”

With Senate approval secured, the bill now heads to the Texas House of Representatives. If passed, it will make Texas a pioneer in state-managed cryptocurrency reserves.