- Texas advances Senate Bill 21 (SB 21), proposing the creation of a Texas Strategic Bitcoin Reserve.
- President Donald Trump signed an executive order establishing a strategic Bitcoin reserve.
Texas is a leading force in the race to integrate cryptocurrency into U.S. state-level financial strategy. The Texas Senate recently approved SB 21, a bill allowing the state to allocate public funds to Bitcoin and other digital assets. This move follows President Donald Trump’s initiative to establish a strategic crypto reserve as a public treasury option.
Senator Charles Schwertner, the bill’s sponsor, emphasized Bitcoin’s resilience through economic cycles and challenges. “Bitcoin has proven itself as a solid reserve asset in times of financial uncertainty,” Schwertner stated. He positioned the move as a hedge against inflation and national debt concerns.
New Hampshire is also making strides. House Bill 302, which permits investing up to 5% of public funds into Bitcoin and precious metals, cleared a committee vote with overwhelming support (16-1). Utah, meanwhile, faces a crucial deadline, needing one final Senate vote before the legislative session ends. If it fails to pass, the bill will be delayed another year.
Some States Resist Over Volatility Concerns
While Texas and others move forward, several states remain skeptical. Montana, Wyoming, and the Dakotas recently rejected similar proposals, citing Bitcoin’s price volatility. Montana legislators voted 59-41 against a reserve bill, calling it “too risky” as Bitcoin’s price dropped 22% from its January high.
Despite these concerns, industry leaders argue that Bitcoin’s market capitalization of $1.7 trillion makes it a more viable reserve asset. Texas’ proposal specifically limits investments to assets above this threshold, ensuring only the most established cryptocurrencies qualify.
U.S. Secretary of Commerce Howard Lutnick also confirmed the “unique status” given to Bitcoin among other digital assets.
“There is bitcoin, and then there are other cryptos that I think will be treated differently. Positively, but differently” Howard said.
Trump’s Crypto Reserve Plan Divides the Industry
Trump’s strategic crypto reserve plan is adding fuel to the debate. He recently suggested the US could hold a mix of Bitcoin, Ethereum, XRP, Solana, and Cardano. However, many in the industry believe Bitcoin alone fits the mold of a gold-like reserve asset.
“Bitcoin is the only asset with the decentralization and scarcity necessary for a national reserve,” said Michael Saylor, executive chairman of MicroStrategy. Others question how the government would acquire and store these assets, given the regulatory hurdles and security risks involved.
With Texas leading the charge, the landscape of crypto in public finance is evolving. If more states follow suit, Bitcoin’s role in government reserves could shift from theory to reality. The next big test will be whether Utah meets its deadline and how federal regulators respond to this growing trend.
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