Texas Advances SB 21 for Potential Establishment of State-Controlled Bitcoin Reserve Following New Hampshire’s Lead

• Texas is poised to become a pioneer in cryptocurrency governance with the advancement of SB 21, aimed at establishing a state-controlled Bitcoin Reserve.

• The legislation reflects a rising trend in crypto adoption and state-level fiscal initiatives across the U.S.

• A spokesperson for the Texas Blockchain Council noted, “SB 21 could provide much-needed stability and transparency in state-managed digital assets.”

Texas advances SB 21, positioning itself as a leader in state-managed Bitcoin Reserves while influencing the broader crypto landscape.

Texas moves ahead with the State Bitcoin Reserve Bill

Backed by strong bipartisan support, the bill recently cleared its second reading in the Texas House with a decisive 105-23 vote and now awaits one final approval before heading to Governor Greg Abbott’s desk. This legislative push was initially spurred by a growing interest from states looking to stabilize their finances through Bitcoin.

Originally inspired by initiatives in other states and buoyed by national momentum following former President Trump’s endorsement of state-level Bitcoin reserves, SB 21 integrates mechanisms similar to those established in New Hampshire to determine which digital assets qualify for inclusion.

Under its current provisions, only altcoins with a sustained $500 billion market capitalization over 24 months would be eligible. The bill’s trajectory—from rapid committee approval to Senate passage—underscores a burgeoning appetite for sovereign crypto-backed reserves at the state level. This positions Texas as a potential leader in the digital asset landscape.

Remarking on the same, a pro-crypto policy watchdog claimed,

“Texas’ Strategic Bitcoin Reserve bill passes House second reading. SB 21 passed by a vote of 105 – 23. SB 21 was also amended to increase the length of time a digital asset’s market cap is under consideration for inclusion in the bill, from 12 to 24 months…making it harder to qualify.”

How will it impact Texas’s crypto ecosystem?

Texas’s push to formalize a Bitcoin Reserve traces its roots back to December of last year when the idea first emerged under H.B. 1598. The proposed legislation aims to hold Bitcoin—and potentially other digital assets—as a strategic safeguard against inflation and economic uncertainty.

According to the House committee’s version, the state comptroller would be required to submit biennial reports detailing the crypto holdings, their current valuation, and any changes over time. An expert advisory panel composed of seasoned crypto investors would assist in managing the reserve’s assets.

This legislative momentum follows Texas’s rise as a dominant force in the U.S. crypto mining sector over the past two years. However, before the bill can be enacted, it must pass a third reading in the House, and since it was amended, the final version will require reconciliation between the House and Senate drafts before reaching the governor’s desk.

Is Texas following New Hampshire’s footsteps?

If Texas successfully pushes Senate Bill 21 into law, it could become the second U.S. state to establish a state-managed Bitcoin reserve, following New Hampshire’s lead earlier this month. Arizona came close, but its governor ultimately vetoed the effort, passing only a related bill concerning unclaimed crypto.

Meanwhile, the concept of national or regional Bitcoin reserves is gaining global traction. Ukraine, currently undergoing both conflict and digital transformation, is preparing to introduce legislation to create its own Bitcoin reserve. Spearheaded by MP Yaroslav Zhelezniak, this move could position Ukraine as the first European country to pursue such an initiative, highlighting that the race for strategic crypto reserves is transcending U.S. borders.

Conclusion

With the passage of SB 21, Texas is redefining the state’s role in the cryptocurrency ecosystem. As legislation incorporates safeguards that prioritize stability and transparency, the implications of state-managed Bitcoin reserves will likely be felt across the broader industry. The success of this initiative could not only set a precedent in the U.S. but also inspire countries globally to explore similar strategies.