Texas Senate Passes Bill to Create State-Controlled Cryptocurrency Reserve

Austin, TX – On Thursday, March 6, 2025, the Texas Senate passed a historic measure that would establish a state-controlled cryptocurrency reserve, positioning Texas to become the first state in the United States to have its own reserve for digital assets. The decision follows President Donald Trump’s recent announcement regarding a proposed national cryptocurrency strategic reserve.

Details of Senate Bill 21

Senate Bill 21, authored by Republican Senator Charles Schwertner of Georgetown, enables the state comptroller to purchase, hold, and manage various cryptocurrencies, including Bitcoin. The bill is designed as a hedge against inflation and economic volatility, aiming to diversify Texas’ investment portfolio in the rapidly evolving digital financial landscape.

Funding for the cryptocurrency reserve would come from legislative appropriations and donations from private citizens and corporations. In addition, the bill mandates the creation of a committee that will provide investment recommendations on which digital currencies to acquire.

“With this bill, Texas can diversify our investment approach, compete in the digital economy, and leverage the benefits of Bitcoin and other cryptocurrencies,” Schwertner expressed during a floor debate.

The proposed reserve would also be subject to regular third-party audits, with reports to be submitted to the state legislature every two years, enhancing transparency and accountability.

Senate Vote and Ongoing Debate

The bill garnered considerable support, passing the Senate with a vote of 25 in favor to 5 against. It is now set to move to the Texas House for further consideration.

The passage was marked by a vigorous debate, particularly between Senator Schwertner and Democratic Senator Roland Gutierrez of San Antonio. Gutierrez raised concerns regarding the inherent volatility of cryptocurrencies, cautioning against using state funds for such investments. “When the economy is down, Bitcoin is down, and the fluctuations on this stuff is insanity,” he argued, emphasizing the need for the state to address more pressing issues facing its citizens rather than engaging in speculative investments.

Regulatory Concerns

Gutierrez’s opposition focused on the lack of comprehensive regulation surrounding cryptocurrencies. He stated, “We have so many real concerns in this state, and the last thing we need to do is benefit some techno bro.” In response, Schwertner defended the integrity of cryptocurrency, citing the security of blockchain technology, which operates as a decentralized digital ledger for transactions and offers a degree of accountability not found in traditional financial systems.

Despite the criticism, the majority of lawmakers moved swiftly to advance the bill by opting to skip a third reading, allowing it to transition promptly to the House.

Implications for Texas and National Context

Governor Greg Abbott has previously shown interest in positioning Texas as a leading hub for cryptocurrency usage. Meanwhile, President Trump’s recent proposal for a national crypto reserve signals increasing federal interest in the world of digital assets such as Bitcoin, Ethereum, and other major cryptocurrencies.

As the Texas House prepares to review Senate Bill 21, state officials and taxpayers alike are awaiting the implications of this measure, which could reshape Texas’ financial landscape and potentially influence national cryptocurrency policy.