One of the largest states in the U.S., Texas, has taken a historic step in the field of digital assets. On May 21, 2025, the Texas House of Representatives passed the “Strategic Bitcoin Reserve and Investment Act” (SB21) by a vote of 101 to 42. This legislation provides a legal basis for the state of Texas to invest public funds in Bitcoin and to add BTC to its official reserves.
The bill now awaits the signature of Texas Governor Greg Abbott. The governor may either sign or veto it. However, if no action is taken, the bill will automatically become law within 20 days.
Bitcoin Becomes an Official Reserve Asset for Texas
With SB21, Texas will be able to use surplus general revenue to purchase Bitcoin. These purchases will be held in a special fund, established independently from the state treasury, and stored using high-security methods such as cold storage.
The law also introduces transparency and reporting requirements, similar to those imposed on gold held in the Texas Bullion Depository. Each quarter, the dates, quantities, and costs of Bitcoin purchases will be disclosed to the public.
While the legislation doesn’t specify a dollar limit, it states that the funds can only be held in jurisdictions where Bitcoin is legally recognized as property. This clause provides an important regulatory safeguard.
Emphasis on Financial Sovereignty and the Digital Future
One of the bill’s main sponsors, Representative Giovanni Capriglione, said the following in his pre-vote speech:
“Today’s action shows Texas’ commitment to becoming a leader in the digital age. We are now embracing Bitcoin—a modern, borderless store of value—instead of traditional gold.”
This law is not just an investment move; it is also part of Texas’ broader vision of financial sovereignty. The bill emphasizes that Bitcoin can serve as a hedge against inflation and economic volatility.
Additionally, the state auditor is tasked with researching revenue potential related to state fees through the Lightning Network. This means Bitcoin is being evaluated not just as an investment asset, but also as a payment infrastructure.
Texas Becomes the Third State to Establish a Bitcoin Reserve
With this law, Texas becomes the third U.S. state, after Arizona and New Hampshire, to direct public assets toward Bitcoin as part of a strategic reserve. As Senator Charles Schwertner pointed out, this initiative could increase Texas’ monetary flexibility and provide a buffer against financial shocks.
Key Highlights of the Law:
- The state can purchase Bitcoin using surplus general revenue
- BTC will be stored in a special reserve fund
- All transactions will be transparently reported
- The Lightning Network’s revenue potential will be examined
- Reserve assets can only be held in jurisdictions with legal recognition of Bitcoin
Texas’ SB21 bill marks a major milestone in the official recognition of cryptocurrencies as state-level financial instruments. The fact that Bitcoin is now being considered not just as an investment but as a strategic reserve asset may represent a shift that transforms not only the crypto market, but also the financial system as a whole.
All eyes are now on Governor Greg Abbott and what decision he will make in the coming days. But one thing is already clear: U.S. states are lining up for Bitcoin.
