Texas Passes Measure to Create State Crypto Reserve as Bitcoin Sets New Record
Austin, Texas – May 21, 2025 – The Texas House has taken a significant step towards embracing cryptocurrency by passing a bill to establish a state-owned bitcoin reserve. This development coincides with the cryptocurrency market’s resurgence, highlighted by bitcoin reaching a new all-time high of over $109,000 per unit on May 21, 2025. ## Legislative Milestone
Senate Bill 21, which seeks to create a framework for the state to stockpile bitcoin and potentially other cryptocurrencies, has received overwhelming support in the Texas House, passing with a vote tally of 105 in favor and only 23 against. The bill will now be sent to Governor Greg Abbott’s desk for approval. The Texas state comptroller will oversee the management and trading of any assets in the reserve.
"This bill is a forward-thinking measure," said State Representative Giovanni Capriglione (R-Southlake), a leading advocate for the legislation. He emphasized the importance of recognizing digital assets as a strategic opportunity that can enhance the state’s fiscal resilience and position Texas as a leader in the evolving digital economy.
A Divisive Proposal
Despite the strong majority vote, the bill’s passage was not without controversy. Some lawmakers, including Rep. Ron Reynolds (D-Missouri City), voiced concerns over the lack of oversight and the potential risks associated with investing taxpayer money into a volatile asset like cryptocurrency. Reynolds argued that such moves could disproportionately benefit wealthy investors and jeopardize public funds.
The bill underwent a recent amendment aimed at imposing stricter eligibility criteria for the types of cryptocurrencies that could be included, reflecting an acknowledgment of the risks associated with digital currencies.
Economic Context and Industry Response
The introduction of SB 21 follows a broader trend across the country, as various states, including Ohio, Arizona, and North Dakota, explore similar initiatives. Lt. Governor Dan Patrick has publicly supported the strategic move, highlighting it as a response to what he has described as reckless fiscal policies at the federal level.
Lee Bratcher, president of the Texas Blockchain Council, expressed optimism about the bill’s implications for the state’s economic landscape. "We’re recommending prudent standards," Bratcher stated, suggesting that involving a state reserve could ultimately diversify the state’s financial portfolio.
The Future of Crypto in Texas
While New Hampshire has established the first state crypto reserve, Texas has the potential to execute actual funding for its reserve, should the governor sign the bill into law. The specifics of how much public funding will be allocated remain unclear, and the bill does not specify a set amount, with further funding decisions likely to be determined in upcoming budget discussions.
Supporters of the reserve argue it would not only provide a hedge against market volatility but also signal Texas’s commitment to fostering a favorable environment for innovation and growth within the cryptocurrency sector.
Market Conditions and Broader Perspectives
The cryptocurrency market has shown signs of recovery after a prolonged downturn, known as the "crypto winter," which saw substantial losses in 2021. The recent surge in bitcoin’s value may have been boosted by renewed institutional interest and regulatory developments at the federal level, including an executive order from former President Donald Trump advocating for the establishment of a federal crypto reserve.
Despite the optimism surrounding the industry, critics caution about the inherent risks of volatility associated with digital assets. John Griffin, a finance professor at the University of Texas at Austin, remarked, “Crypto was created to be a decentralized currency, yet here we are asking the government to prop it up.”
Conclusion
As Texas prepares to potentially become a pioneer in creating a state-backed cryptocurrency reserve, the implications of this legislation could shape the future of public finance in the Lone Star State, while raising questions about the long-term viability and regulatory dynamics within the rapidly evolving cryptocurrency market. The coming weeks will reveal Governor Abbott’s stance, as his decision will determine the extent of Texas’s investment in digital assets.
Share this article:
