Texas Moves to Establish Strategic Bitcoin Reserve After Senate Approval

The Texas House of Representatives took a major step toward creating a state-managed Bitcoin reserve on Tuesday by approving Senate Bill 21, clearing a significant legislative hurdle.

The session opened with the adoption of an amendment from Representative Linda Garcia (D-TX), which extended the required market capitalization period for eligible digital assets from 12 months to 24 months.

Backed by strong bipartisan support, the House passed the bill with a 105-23 vote, sending it to a third reading.

Describing the measure as "forward-thinking," House sponsor Giovanni Capriglione (R-TX) said the bill would help position digital assets “not as a trend but as a strategic opportunity” and would be key to “strengthening the state's fiscal resilience.”

Officially known as the Texas Strategic Bitcoin Reserve and Investment Act, the legislation lays the foundation for the state comptroller to manage digital assets in a dedicated “special fund outside the state treasury.”

Initial ideas around the Bitcoin reserve were introduced in December through H.B. 1598. The current bill permits the fund to hold Bitcoin and potentially other cryptocurrencies as “a hedge against inflation and economic volatility,” according to the House committee version of the bill text.

Under the legislation, the state comptroller would be required to submit biennial reports to the legislature detailing the value of the state’s crypto holdings and any changes. The reserve’s management would be guided by an advisory committee composed of experts in crypto investment.

Momentum behind the bill reflects Texas’s growing role in the digital asset ecosystem. The state has emerged as a leading destination for crypto miners, consistently ranking among the top U.S. states for mining activity over the past two years.

Despite the progress, the bill must still pass a third reading in the House. Since the House version includes amendments, any differences with the Senate version must be reconciled before the legislation can be finalized and sent to the governor.

If enacted, Texas would likely become the second U.S. state to establish a strategic Bitcoin reserve, following New Hampshire’s move earlier this month. Arizona attempted to do the same, but its governor vetoed the reserve bill. Only a companion measure covering unclaimed crypto assets was passed.