Today, the Texas Senate officially passed Senate Bill 21 (SB-21) with a majority vote, marking a significant step toward establishing a state-level Bitcoin reserve fund. The bill is now awaiting approval from the Texas Governor. If signed into law, Texas will become the first state in the U.S. to officially hold Bitcoin as part of its strategic reserve assets. This move positions Texas as a frontrunner ahead of Utah, which is also making strides in incorporating cryptocurrency into its asset management strategy.
Texas Senate Officially Passes SB-21 Bill On Bitcoin Reserve Fund
Austin, Texas – In a significant move toward legitimizing Bitcoin as a state reserve asset, the Texas Senate has voted to approve SB-21, paving the way for the establishment of the state’s Bitcoin Reserve Fund. The initial vote concluded with a 25-5 margin after a heated debate on the Senate floor. However, after a third round of voting, the bill received unanimous approval with a 31-0 vote.
Senator Charles Schwertner, the sponsor of SB-21, asserted that Bitcoin could play a crucial role in strengthening Texas’ financial balance sheet due to its scarcity and increasing value. He argued that Bitcoin is not a competitor to the U.S. dollar but rather resembles gold—a valuable tool for hedging against inflation. Additionally, he criticized the federal government’s monetary policies, claiming that excessive money printing has been eroding the purchasing power of the U.S. dollar over time.
With the passage of this bill, Texas is moving closer to becoming the first U.S. state to officially hold Bitcoin, positioning itself in direct competition with Utah in the race to integrate cryptocurrency into strategic asset reserves.
Texas Moves Closer to Establishing the First State-Level Digital Asset Reserve Fund in the U.S.
Texas is making significant strides toward becoming the first state in the U.S. to establish a digital asset reserve fund. Senate Bill SB-21, which proposes the creation of this fund, has already been approved by the Senate and is now awaiting the Texas Governor’s signature to become law. If enacted, Texas could take the lead in launching a state-backed digital asset reserve, while Utah is also making similar efforts to be at the forefront of this movement.
Initially, SB-21 focused solely on Bitcoin, but in February, the bill was revised to include a broader range of digital assets. This amendment came after President Trump issued an executive order on January 23, directing a feasibility study on establishing a nationwide digital asset reserve fund. The move reflects the government’s growing interest in integrating digital assets into the mainstream financial system.
States Leading the Trend in Bitcoin Reserves
While the U.S. federal government is still considering the establishment of a Bitcoin reserve fund, several states may take the lead in implementing this idea.
Senator Cynthia Lummis, one of the strongest advocates for Bitcoin in the U.S., recently emphasized that states are likely to set up Bitcoin reserve funds more quickly than the federal government. She pointed out that bureaucratic and administrative hurdles are delaying progress at the federal level, whereas states have greater flexibility in decision-making.
Earlier, in July 2024, Lummis introduced the Bitcoin Act to the U.S. Senate. This bill aims to create a legal framework for the U.S. government to hold Bitcoin, marking a significant step toward recognizing the role of digital assets in the national financial system.
With states like Texas embracing Bitcoin, the landscape of digital asset adoption is rapidly evolving. As the regulatory framework continues to take shape, the role of Bitcoin in state reserves could become a new standard in financial strategy. Stay tuned with MevX for the latest updates on how blockchain technology is shaping the future of finance.
