Texas Senate Advances Bill to Establish State Bitcoin Reserve

• Texas Senate’s approval of SB 21 allows the state to invest in Bitcoin , positioning Texas as a leader in digital asset adoption.
• Through his executive order President Trump created a Bitcoin reserve for the federal government which formalizes cryptocurrencies as part of national financial planning.
• The adoption of Bitcoin legislation for public fund investment by New Hampshire and Utah signals a growing national pattern.

On March 6, 2025, the Texas Senate passed Senate Bill 21 (SB 21) with a 25-5 vote, aiming to create a strategic Bitcoin reserve for the state. The Texas Comptroller under this bill can use state funds to purchase Bitcoin and approve cryptocurrencies above a $500 billion market valuation threshold after its author, Senator Charles Schwertner introduced the legislation. 

Lieutenant Governor Dan Patrick considers bitcoin reserves to be crucial legislation because it would make Texas a leader in cryptocurrency adoption. The matter proceeds to the Texas House for additional examination.

President Trump Signs Executive Order for National Bitcoin Reserve

On March 7, 2025, President Donald Trump endorsed an executive order which developed a strategic Bitcoin reserve for federal use. The Bitcoin department plans to maintain a storage facility of 200,000 sequestered Bitcoins analogously to “digital Fort Knox.” The order also mandates a comprehensive audit of the government’s Bitcoin holdings and directs the development of strategies to acquire more Bitcoin without additional taxpayer expense. 

David Sacks, the White House AI and Crypto Czar, announced the initiative, underscoring its significance in integrating cryptocurrencies into the financial system. This move precedes the White House Crypto Summit scheduled for March 7, 2025, which will feature prominent industry leaders. 

Other States’ Actions on Bitcoin Reserves

Additional states pursue laws like Texas after it set an example. New Hampshire adopted House Bill 302 which enables the state treasurer to distribute a maximum 5% of public funds toward Bitcoin alongside other precious metals. Legislation in Utah advances public fund investment into cryptocurrencies since the bill surpassed the Utah House and awaits to become law.

House Bill No. 429 met with rejection from the Montana House of Representatives when members rejected making Bitcoin the state’s reserve asset through this legislation.

The Texas Senate accepted SB 21, which represents a major advancement in the process of adopting Bitcoin as a state financial instrument. State governments join federal programs and interstate actions in creating a broader trend for public entities to investigate cryptocurrency additions in financial management portfolios.