Texas Edges Closer to Historic Bitcoin Reserve as Bill Clears Key Hurdle

The legislation, authored by Republican State Senator Charles Schwertner, had previously cleared the Texas Senate by a 25-5 margin in April. The bill authorizes the state comptroller to invest in Bitcoin as a strategic reserve asset, provided the digital asset meets a market capitalization threshold of $500 billion over the past 12 months—criteria currently only satisfied by Bitcoin.

If approved, Texas would become the second U.S. state to formally create a Bitcoin reserve fund, following the footsteps of New Hampshire, which recently authorized Bitcoin holdings through HB 302. The bill aligns with broader national trends toward recognizing Bitcoin as both a hedge against inflation and a long-term store of value within public financial systems.

Under the proposed legislation, the state comptroller—currently Glenn Hegar—would oversee the creation, acquisition, custody, and management of the Bitcoin reserve. Importantly, the reserve would be maintained separately from the state’s general treasury, enabling a degree of operational flexibility. The reserve fund would be used as a strategic hedge and could allow Texas to participate in the global shift toward digital assets without risking the liquidity of its primary accounts.

The bill also outlines mechanisms for periodic public reporting, mandating that the comptroller submit an annual audit and performance review of the digital reserve. This transparency requirement aims to address concerns over volatility and taxpayer accountability.

Senator Schwertner, a consistent advocate for financial innovation, has positioned the initiative as part of a broader strategy to strengthen Texas’s long-term economic resilience. He views Bitcoin as a maturing asset that has demonstrated durability through market cycles and sees its growing institutional acceptance as a reason for the state to explore digital diversification.

Texas has cultivated a strong reputation as a crypto-friendly jurisdiction, hosting major mining operations and attracting blockchain firms to cities like Austin, Houston, and Rockdale. Governor Greg Abbott has also voiced past support for integrating digital assets into the state’s economy, though he has not yet commented publicly on SB 21.

Proponents argue that establishing a Bitcoin reserve could enhance Texas’s ability to withstand monetary debasement, inflation, and systemic shocks, while positioning the state as a national leader in digital innovation.

Despite strong support from crypto advocates, SB 21 has drawn skepticism from some lawmakers and economists. Detractors point to Bitcoin’s historic volatility, limited liquidity in crisis scenarios, and the environmental footprint of proof-of-work mining.

Democratic Representative Erin Zwiener questioned whether taxpayer-backed funds should be exposed to an asset class that remains speculative and prone to regulatory risk. Others worry that without strong federal guidance, such state-level initiatives could pose compliance issues with future digital asset regulations.

Environmental groups have also chimed in, highlighting the state’s existing power grid stress and the potential for Bitcoin mining demand—already heavy in Texas—to strain resources further.

Texas joins a growing number of U.S. states considering or implementing digital asset policies. Earlier this year, New Hampshire passed legislation allowing up to 5% of its reserves to be invested in Bitcoin and other qualifying digital assets. Meanwhile, Florida’s proposed Bitcoin reserve bills were recently withdrawn, signaling more cautious movement in some jurisdictions.

At the federal level, no comprehensive framework yet exists for state-held crypto reserves, but increasing institutional adoption—such as Bitcoin ETFs approved by the SEC—has emboldened state policymakers.

Major banks like JPMorgan and BlackRock have also expanded services related to Bitcoin and tokenized assets, contributing to the asset’s rising legitimacy.

The full Texas House is expected to consider SB 21 in the coming weeks. If passed, the bill will proceed to Governor Abbott’s desk for final approval. Given the current momentum and political support within the state’s Republican-led government, the bill stands a strong chance of success.

Should Texas formalize its Bitcoin reserve, it could set another major precedent for state-level financial innovation—offering both a symbolic and material endorsement of Bitcoin’s evolving role in institutional finance.