Texas Approaches Becoming the First State to Possess Bitcoin
Top 20 Crypto to Invest in May 2025Texas is making waves again, and this time it’s not related to barbecue or energy. The state’s legislators have approved a plan to establish a strategic BTC reserve, paving the way for Texas to potentially become the first in the U.S. to formally incorporate BTC into its financial framework. The bill has successfully cleared the House and is now awaiting one last signature from Governor Greg Abbott.
What’s Included in the Bill?
The legislation, referred to as Senate Bill 21 (SB 21), received approval from the Texas House of Representatives with a vote of 101 to 42. It had previously passed through the Senate earlier this year. This proposal outlines a strategy to establish the Texas Bullion Depository Reserve Fund, which would enable the state to invest in Bitcoin alongside other digital currencies.
HISTORY: TEXAS passes Strategic BTC Reserve bill SB 21 pic.twitter.com/6oZBbHjEgA
— BTC Laws (@Bitcoin_Laws) May 21, 2025
The fund would be managed by the state comptroller, distinct from Texas’ primary treasury. The objective is to amass a reserve of Bitcoin that could function as a safeguard during challenging economic circumstances. Furthermore, it’s not an open invitation, as the bill restricts assets to those with a 24-month average market cap of at least $500 billion. In simpler terms: it’s primarily focused on Bitcoin.
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How the Funding Works
Funding for the Bitcoin reserve may come from various sources. The state legislature could designate funds outright, while Texans themselves could make contributions via private donations. However, there’s a stipulation that only residents of Texas would be permitted to donate. This requirement was initially removed from the bill at one point, but lawmakers subsequently reinstated it.
The legislation also encompasses a mechanism for ensuring transparency for both lawmakers and the public. The comptroller would be obliged to provide a report biennially detailing the assets within the reserve, their management, and whether any assets have been sold or redistributed. An advisory committee would lend base level in shaping the strategy.
The Motivation Behind Texas’ Bitcoin Reserve
Proponents of the bill assert that this initiative is about preparing for a future where Bitcoin and other digital currencies assume a more significant position in the financial landscape. Representative Giovanni Capriglione, a sponsor of the bill, has positioned it as a method to grant Texas greater authority over its financial viability.
Texas has already established itself as a Bitcoin-friendly region. It hosts major block rewards operations and has generally embraced crypto firms. Incorporating Bitcoin into the state’s financial profile might seem like a logical progression.
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Other States Are Following Suit
Texas isn’t the only state considering Bitcoin in this manner. New Hampshire enacted similar Bitcoin reserve legislation earlier this year. At the federal level, President Trump signed an executive order in March establishing a Strategic Bitcoin Reserve using coins obtained from criminal investigations.
Thus, while Texas might not be the inaugural government entity to hodl Bitcoin, it would certainly be the largest U.S. state to make this move.
What’s on the Horizon?
The ball is now in Governor Greg Abbott’s court. He has 20 days to sign the bill into law or to veto it. While he hasn’t made any explicit comments about SB 21, Abbott has historically endorsed BTC and blockchain advancement previously. This leads many to believe he’s inclined to approve it.
If he signs it, Texas will not only be block rewards Bitcoin but also holding it as well.
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Key Points
- Texas is on the verge of becoming the inaugural U.S. state to possess Bitcoin, pending final approval from Governor Greg Abbott.
- Senate Bill 21 would establish a state-administered Bitcoin reserve fund, overseen by the comptroller and financed through state allocations or private contributions.
- The reserve will include only digital assets that long-term holding a 24-month average market cap of $500 billion or higher, which predominantly focuses on BTC.
- The legislation incorporates transparency measures, requiring reports biannually on fund contents and management, as well as guidance from an advisory committee.
- Texas is aligning itself with a growing number of governments considering BTC reserves, reflecting a broader trend towards integrating cryptocurrency into public financial frameworks.
The article Texas Moves Closer to Becoming First State to Long-term holding Bitcoin first appeared on 99Bitcoins.
