Texas Proposes Strategic Bitcoin Reserve Amid Push for Crypto Sovereignty
Key Takeaways:
- Texas Senate Bill 21 proposes creating a Texas Strategic Bitcoin Reserve managed by the State Comptroller.
- The reserve could hold billions in Bitcoin and select cryptocurrencies with over $500B in market cap.
- Texas positions crypto as a hedge against inflation and a strategic financial asset for state stability.
Texas is making a bold move in cryptocurrency policy. A new bill introduced in the state legislature aims to turn Bitcoin into a strategic asset—on par with gold or oil—by creating an official state-managed reserve.
Read More: Texas Senate Approves Bitcoin Strategic Reserve Bill
Texas Pushes for a State-Backed Bitcoin Reserve
Texas Senate Bill 21 (SB21), known as the Texas Strategic Bitcoin Reserve and Investment Act, has been placed on the General State Calendar for further legislative review. If passed, the bill will establish a special fund outside the state treasury to acquire and manage Bitcoin and other major cryptocurrencies.
The reserve will be under the control of the Texas Comptroller of Public Accounts and funded through state appropriations, dedicated revenue streams, and crypto-native sources such as forks and airdrops.
Importantly, any crypto asset acquired through this fund must have a minimum 12-month average market capitalization of $500 billion, effectively limiting the reserve to Bitcoin and potentially Ethereum, depending on market conditions.
A New Financial Hedge in the State Playbook
SB21 frames Bitcoin as a strategic hedge—a financial buffer that can protect Texas from inflation, fiat currency volatility, and macroeconomic shocks. The bill states that cryptocurrency investments will enhance the financial security of Texans by diversifying the state’s reserve holdings.
The fund is not just symbolic. With provisions for active portfolio management, cold storage custody, and third-party administrators, the reserve could become a sizable crypto treasury under professional oversight.
Notably, the bill allows the state to profit from forks, airdrops, and staking rewards, potentially adding passive revenue streams. These earnings can be reinvested or used to offset administrative costs.
Why It Matters for the U.S. Crypto Landscape
Texas is not just embracing Bitcoin—it’s institutionalizing it. While other U.S. states like Wyoming have enacted crypto-friendly regulations, Texas is the first to propose holding crypto at a state level as part of a strategic asset portfolio.
This move sets a precedent: if successful, other states may follow, leading to competition in who can hold the most digital wealth. It could also create a new battleground over federal vs. state control in financial policy.
It’s also worth noting that the reserve cannot be tapped for other uses without legislative approval, adding an extra layer of accountability.
Custody, Security, and the Role of Cold Storage
The bill requires that all digital assets be securely stored, likely in cold storage wallets—offline systems not connected to the internet, offering protection from cyberattacks. Only state-chartered or federally regulated financial institutions may act as custodians.
This emphasis on institution-grade custody indicates the state is treating crypto assets with the same level of risk oversight as traditional reserves.
The bill also provides the Comptroller authority to buy, sell, exchange, or retain crypto as any prudent investor would, signaling an intent to engage with crypto markets actively—not just hold assets passively.
A Strategic Signal to the Industry
While SB21 has yet to be signed into law, its progression through the legislature signals a pro-crypto stance by Texas policymakers.
In the context of broader U.S. regulatory uncertainty, Texas is asserting financial independence and innovation. If enacted, the bill could place Texas among the world’s first government entities to directly hold and manage Bitcoin at scale—potentially influencing billions in future public sector crypto investment.
With the bill now in the spotlight, the crypto industry is watching closely—because what starts in Texas may not stay in Texas.
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