The Texas Senate has passed Senate Bill 21 (SB-21), a landmark piece of legislation that would establish a state-controlled Bitcoin reserve. The bill cleared the Senate on March 6 with a 25-5 vote, setting the stage for Texas to become the first U.S. state to officially hold Bitcoin in its treasury—if signed into law by the governor.
Bitcoin as a Strategic Asset
State Senator Charles Schwertner, who introduced the bill, championed Bitcoin as a scarce, valuable asset that could strengthen Texas’ financial position. Addressing concerns on the Senate floor, Schwertner argued that the digital era demands modern financial strategies:
“We don’t have stacks of dollar bills and safes like we did in medieval times. What we have is digital currency.”
Supporters of the bill also rejected concerns that Bitcoin could undermine the U.S. dollar’s global dominance. Instead, they framed BTC as a modern-day gold equivalent and a hedge against inflation. Schwertner criticised monetary inflation, arguing that excessive money printing had eroded trust in the dollar’s purchasing power.
Texas Leads the Way, But More States Could Follow
The original bill, introduced in January 2024, was initially Bitcoin-exclusive but later expanded to include other digital assets. This revision followed President Donald Trump’s January 23 executive order, which directed a commission to study the feasibility of a U.S. digital asset stockpile.
Wyoming Senator Cynthia Lummis, a longtime Bitcoin advocate, has suggested that state-level Bitcoin adoption could outpace federal efforts. Speaking at the Bitcoin Investor Week conference in New York, Lummis said bureaucratic red tape would likely delay federal adoption, making it more probable for individual states to take the lead.
What’s Next?
SB-21 now awaits the governor’s approval. If signed into law, Texas will officially establish a Bitcoin strategic reserve, setting a precedent for other states to follow in integrating digital assets into government reserves.
