Texas Senate Approves Bitcoin Reserve Bill

Texas Takes a Big Step into the Future: A Bitcoin Reserve

The Texas Senate has passed a special law called Senate Bill 21 (SB 21). This law allows Texas to start a special fund for Bitcoin, a type of digital money. This is a big step for Texas, making it a leader in using Bitcoin. Let’s learn more about this new law and what it means.

What is the Bill About?

The bill was introduced by a senator named Charles Schwertner in January 2025. At first, it was only about Bitcoin, but later it was changed to include other digital money with a value of at least $500 billion. The law wants to create a special fund outside the main treasury. This fund will let the Texas comptroller buy, sell, or invest in Bitcoin and other digital money.

Why is the Bill Important?

People who support the bill say that having Bitcoin in the state’s funds can protect against economic problems and inflation, like how gold is used in traditional money markets. Senator Schwertner says Bitcoin’s limited supply and how it can be used make it a good choice for investment. The bill also shows that Texas wants to be a leader in using digital money and not just follow the federal government.

The Vote and What it Means

The Texas Senate voted 25-5 to pass the bill, showing strong support for the idea. This comes at a time when there’s more interest in Bitcoin reserves across the country, even from the president. If Texas successfully sets up this Bitcoin reserve, it could be the first U.S. state to officially use Bitcoin as part of its financial strategy, encouraging other states to do the same.

How Will it be Funded and Managed?

No specific money has been set aside yet, but Senator Schwertner plans to ask for around $20 million for the next two years. The reserve will be managed by a group of experts in crypto investment, chosen by the comptroller. This ensures that the decisions are made by people who know what they’re doing.

What Does This Mean for Texas?

Summary and Future Plans

The Texas Senate’s approval of SB 21 is a big deal. It shows that Texas is serious about using Bitcoin and other digital money. By starting a special Bitcoin reserve, Texas is not only adding to its financial assets but also showing its commitment to innovation and economic strength. Now, everyone is watching to see if Texas can successfully set up this reserve and if other states will follow its example.

—

Sources:
– Cointelegraph
– Quorum Report
– Bitcoin Magazine
– Happy Scribe
– U.Today