Texas Bitcoin Reserve Bill Heads for Final Vote

A Texas House committee has advanced a Republican-backed bill that would establish a state-run Bitcoin reserve, bringing the legislation within one vote of becoming law.

A Texas House committee has advanced a Republican-backed bill that would create a state-run Bitcoin reserve, bringing the legislation one step closer to becoming law.

On May 7, the House Committee on Technology, Federal and State Affairs passed Senate Bill 21 (SB 21) in a 9-4 vote along party lines. The measure now heads to the full House for final consideration.

The bill previously cleared the Texas Senate in a 25-5 vote on March 6.

If passed by the full House and signed into law, SB 21 would authorize the creation of the Texas Strategic Bitcoin Reserve, placing it under the control of State Comptroller Glenn Hegar. The legislation permits the comptroller to allocate funds into digital assets with a minimum market capitalization of $500 billion over the past 12 months.

Currently, only Bitcoin (BTC) meets that threshold, making it the primary candidate for the reserve.

The bill's passage follows a broader trend of state-level interest in Bitcoin adoption. New Hampshire was the first U.S. state to pass a law establishing a Bitcoin reserve, which came in April. Arizona quickly followed suit later that month with its own bill to create a cryptocurrency reserve. Both measures highlight a broader shift among state governments to integrate Bitcoin into public financial strategies.

Texas bill aligns with broader state-level focus on crypto

The Texas bill aims to further diversify the state's investment portfolio and hedge against inflation and macroeconomic risks. It also directs the comptroller to consider the digital asset's liquidity, administrative and legal burdens, and the potential for participating in a cooperative venture with other states.

The bill's supporters say it aligns Texas with innovation and strengthens the state's financial resilience in the face of global monetary shifts.

"This bill puts Texas on the cutting edge of financial technology," said State Representative Charles Goodnight, a Republican who chairs the House Technology, Federal and State Affairs Committee.

"We need to be thinking outside the box and exploring new opportunities to enhance the state's treasury and protect the value of our investments."

The bill's opponents, however, expressed concerns about the lack of oversight and potential risks associated with investing in cryptocurrencies. They also noted that the bill could be subject to legal challenges.

"I think this bill is a bit reckless and irresponsible," said State Representative Ramon "Ray" P.°rez, a Democrat.

"We're putting the state's money at risk with this risky investment."

The House will vote on the bill later this week. If passed, it will then go to Governor Greg Abbott for final approval.