TLDR

• Texas Senate Banking Committee unanimously approved bill SB-21 for state-managed crypto reserve
• Bill allows Texas Comptroller to acquire and manage Bitcoin and other cryptocurrencies
• Originally Bitcoin-only bill was expanded following Trump’s January executive order
• Over 20 states have introduced similar proposals for crypto reserves
• States like Oklahoma, Arizona, and Utah advancing similar legislation while Montana, North Dakota, and Wyoming rejected proposals

The Texas Senate Banking Committee has unanimously approved Senate Bill 21 (SB-21), which would establish a state-managed cryptocurrency reserve. The bill now advances to the full Senate for consideration.

State Senator Charles Schwertner introduced the legislation, which authorizes the Texas Comptroller of Public Accounts to acquire, manage, and trade Bitcoin and other cryptocurrencies. The bill received unanimous support during the committee vote on February 27, 2025.

The initial version of SB-21 focused exclusively on Bitcoin holdings. However, Schwertner revised the bill in February to include other digital assets.

This expansion followed President Donald Trump’s executive order from January 23, 2025. The presidential order directed a federal commission to evaluate the possibility of creating a national digital asset reserve.

The Texas bill specifically addresses the potential benefits of cryptocurrency holdings. The legislation states that Bitcoin and other digital assets can serve as protection against inflation and economic instability.

Pierre Rochard, vice president of research at Bitcoin mining company Riot Platforms, spoke in support of the bill. His testimony came during a public hearing on February 18, 2025.

Rochard emphasized Bitcoin’s transparent nature during his testimony. He pointed out that the cryptocurrency’s audit trail makes it suitable for public financial management.

Despite Texas’s current economic strength, Rochard cautioned about future uncertainties. He advised that the state should prepare for potential economic challenges ahead.

State Crypto Initiatives

Texas joins a growing movement of states exploring cryptocurrency reserves. As of February 2025, more than 20 states have introduced similar proposals.

Oklahoma has made progress with its own Bitcoin reserve legislation. The state’s bill has cleared a House committee and awaits a floor vote.

Arizona’s Senate Finance Committee has approved more extensive measures. Their bill would allow up to 10% of public funds, including pension systems, to be invested in cryptocurrencies.

Utah’s legislature is considering a more conservative approach. Their proposed legislation would permit the state treasurer to allocate up to 5% of public funds to digital assets.

However, some states have rejected similar proposals. Montana, North Dakota, and Wyoming recently voted against Bitcoin reserve bills.

These states cited concerns about cryptocurrency’s volatile nature. They also expressed reservations about the speculative aspects of digital assets.

The Texas bill now moves to the full Senate for debate and voting. The date for the floor vote has not yet been announced.