Texas could become the third state to set up a Bitcoin fund backed by the government if the new legislation goes through. Senate Bill 21, or SB 21 for short, has cleared the state legislature and is headed for the governor’s desk for approval. The bill is also known as the Texas Strategic Bitcoin Reserve and Investment Act.
A Bitcoin reserve managed by the Texas Comptroller will be created using the digital asset as an inflation hedge, says the forthcoming bill. The state will approve funding for the reserve. Plus, the public will contribute, and the reserve will earn on its investments. Finally, safe storage will be guaranteed through third-party custodians.
The Texas Senate passed the bill in March 2025. They passed the bill in the House with a vote of 101 to 42. However, the House changed a key amendment for its eligibility for reserve assets. According to the modification, the threshold of $500 billion that is being sought by the average market capitalization will be increased from 12 months to 24 months. Currently, only Bitcoin is meeting that benchmark. Bitcoin will probably be the only crypto on the reserve for the foreseeable future.
Dennis Porter, the CEO of the Satoshi Action Fund, said he is “99+ percent” sure that the Senate will approve the House’s amended version of the bill. Once approved, the legislation will go to Governor Abbott, who will have 20 days to sign or veto it.
This news has been recognized by more cryptocurrency communities, and many in crypto believe it is a huge victory for Bitcoin. According to State Senator Charles Schwertner, Bitcoin is said to possess similar financial stability to that of gold, especially during downturns.
Texas has followed suit after New Hampshire and Arizona, both of which have passed similar laws recently. A total of 24 U.S. states are reportedly exploring Bitcoin integration into their treasury. This may be a nationwide crypto adoption sign.
Should Governor Abbott endorse SB 21, the reserve will be set up immediately—given the two-thirds majority vote—or by September 1, 2025. Oversight procedures, an advisory committee, and transparent biannual reporting will ensure public accountability.
As institutional interest in Bitcoin continues to rise and CPI data shows conditions that could help sustain growth, Texas’s move could further help Bitcoin’s cause to be regarded as “digital gold” and could rub off on other states in the future in terms of integrating more and more digital assets.
