Bill SB 21, Texas's effort to create a state-level Bitcoin Reserve, has passed its second reading in the House with overwhelming support. The bill requires one more vote and the governor's signature to become law.
The bill has drawn elements from other successful efforts, such as New Hampshire's mechanism for adding new tokens to the Reserve. Currently, Texas will allow altcoins with a market capitalization of 500 billion USD to be maintained for two consecutive years.
Texas May Establish a Bitcoin Reserve
Since President Trump first supported this idea, many U.S. states have pursued their own local Bitcoin Reserve. Immediately after Trump's inauguration, the Lieutenant Governor of Texas called the Bitcoin Reserve a top priority.
Since then, bill SB 21 has passed the committee and the Senate, and it is nearly on the governor's desk:
"The Texas Strategic Bitcoin Reserve Bill has passed its second reading in the House. SB 21 was approved with a vote of 105 - 23. SB 21 was also modified to increase the review time for digital asset market capitalization in the bill, from 12 to 24 months... making qualification more difficult," a pro-cryptocurrency policy oversight organization stated.
Texas's effort has adopted many features from Bitcoin Reserve bills nationwide. New Hampshire was the first state to have a bill become law, and it has similar language.
Although ostensibly a Bitcoin reserve, it also allows other assets, provided they have a market capitalization of 500 billion USD. SB 21 also has this feature, despite the aforementioned 24-month limitation.
Today's progress does not represent a complete victory. Texas's legislative session ends on 06/02, and SB 21 needs to pass a final vote before that to establish the Bitcoin Reserve. However, the overwhelming support for the bill is an encouraging sign.
Theoretically, the final step could occur this week, and Governor Greg Abbott is a long-time Bitcoin supporter.
With bipartisan votes and the governor's support, Texas's Bitcoin Reserve seems very feasible. However, anything could happen.
The Arizona Governor technically signed a law allowing the state to hold BTC, but she vetoed two bills that would actually permit purchasing. Florida's efforts also showed early bipartisan support, but its Reserve bills did not progress far.
These events demonstrate the importance of not taking anything for granted, despite optimistic signals. Most state Bitcoin Reserve proposals have failed so far, and Texas's SB 21 will be one of very few surviving bills if successful.
However, the success of the GENIUS Act despite strong opposition also contains a valuable lesson. The cryptocurrency industry's political support remains very strong.
