- Texas prioritizes a state Bitcoin reserve, joining other states in the crypto reserve race.
- Senate Bill 21 advances Texas’ digital asset strategy, enabling Bitcoin reserves via taxes and donations.
Texas is taking a bold step in digital asset adoption, with Lieutenant Governor Dan Patrick announcing that the establishment of a Texas Bitcoin Reserve is one of the state’s top legislative priorities for 2025. Senate Bill 21, which Patrick has placed at the forefront of the 89th regular legislative session, aims to position Texas as a leader in cryptocurrency adoption by allowing the state to accumulate Bitcoin.
If implemented, Texas will join at least five other U.S. states, including Arizona, Utah, Pennsylvania, Ohio, and Florida, that are advancing similar Bitcoin reserve initiatives. Pennsylvania, for instance, introduced the Bitcoin Strategic Reserve Act to allocate up to 10% of its $7 billion Rainy Day Fund and $9.7 billion General Fund into Bitcoin. Similarly, Ohio’s Bitcoin Reserve Act grants the State Treasurer the authority to purchase Bitcoin at any time.
Texas’ initiative, however, is seen as one of the most ambitious yet. The bill proposes the creation of a reserve separate from the $250 billion annual state revenue fund, with Bitcoin acquired through tax payments and voluntary contributions rather than direct state purchases.
State Senator Charles Schwertner wrote on X.
“It’s time for Texas to lead the way in establishing a Strategic Bitcoin Reserve. That’s why I filed SB 778, which, if passed and signed into law, would make Texas the first state in the nation to establish a Strategic Bitcoin Reserve,”
Texas Joins Growing National Movement Toward Bitcoin Reserves
Texas’ push for a Bitcoin reserve is closely tied to its dominant position in the U.S. Bitcoin mining industry. The state has become a major hub for mining due to cheap electricity, abundant renewable energy sources, and a deregulated power grid. It currently hosts some of the largest mining operations globally, making it an ideal candidate for integrating Bitcoin into state finances.
The Texas economy, valued at $2.4 trillion, is the 8th-largest in the world if treated as a sovereign nation. With the state generating over $250 billion in annual revenue from taxes, fees, and assessments, the potential scale of its Bitcoin holdings could be substantial.
The bill also aligns with broader national efforts to integrate Bitcoin into public financial reserves. At the federal level, U.S. Senator Cynthia Lummis has introduced legislation proposing the U.S. Treasury acquire 1 million Bitcoin over five years, reflecting growing interest in crypto reserves. Prediction markets such as Polymarket currently place a 56% probability on the federal Bitcoin reserve becoming a reality in 2025
Challenges and Unanswered Questions
While the initiative has gained strong political backing, several challenges remain. The bill does not currently include provisions for direct Bitcoin purchases by the state, focusing instead on accepting Bitcoin for payments. This raises questions about how the state will store, secure, and manage Bitcoin holdings.
Texas also faces regulatory uncertainties. With federal oversight on the rise, state-run Bitcoin reserves could eventually be subject to new financial and tax regulations. Critics argue that Bitcoin’s volatility makes it an unpredictable asset for government treasuries.
Despite these concerns, Texas lawmakers remain confident that the bill will gain support.
“These priorities represent the will of the conservative majority of Texans,” said Lt. Gov. Dan Patrick.
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