TL;DR
- Texas’ SB 21 bill has passed its second House reading with overwhelming support (105-23) and aims to establish a state-managed Bitcoin reserve, becoming the second U.S. state to do so after New Hampshire.
- The bill also allows for other cryptocurrencies to be included, provided they maintain a $500 billion market cap for at least 24 months.
- With bipartisan backing and Governor Abbott’s support, final approval seems very likely.
The state of Texas is on the verge of making financial history in the United States. Senate Bill 21, which proposes the creation of a Strategic Bitcoin Reserve, has passed its second reading in the Texas House of Representatives with 105 votes in favor and only 23 against. This progress leaves the bill just one vote away from becoming law—potentially making Texas the second state to officially implement a crypto reserve, following New Hampshire’s recent move.
The initiative not only includes the purchase and custody of Bitcoin by the state but also opens the door for other cryptocurrencies to be part of the reserve, under one key condition: they must maintain a market capitalization of over $500 billion for a full 24-month period. This filter excludes most altcoins, limiting eligibility to highly established tokens like Ethereum.
Texas Strengthens Its Role as a Crypto Epicenter
Texas has long been positioning itself as a leader in the U.S. Blockchain space. Already one of the country’s largest crypto mining hubs, thanks to its affordable energy and pro-industry policies, the state is now taking a bold step toward integrating digital assets into its financial strategy. The proposed reserve aims to serve as a hedge against inflation and economic volatility, marking a pioneering approach to public asset management.
The bill enjoys strong bipartisan support, and Governor Greg Abbott—a vocal proponent of Bitcoin and blockchain technology—has expressed consistent backing for crypto-related policies. Although the bill still requires a third and final reading in the House, and later, reconciliation with the Senate’s version (which does not yet reflect the 24-month market cap amendment), the chances of final approval remain high.
A Future Where States Secure Value Through Crypto
If approved, Texas will follow in the footsteps of New Hampshire and leap ahead of states like Florida and Arizona, which attempted similar legislation but failed to push it through. Texas’ advantage lies in political coordination, strategic foresight, and growing public acceptance of cryptocurrencies as legitimate economic tools. In a global context marked by inflation, initiatives like this reinforce the role of crypto assets as new, state-level stores of value.
