20 days countdown: Texas could become the third state in the U.S. to enact a bitcoin reserve bill
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20 days countdown: Texas could become the third state in the U.S. to enact a bitcoin reserve bill
Texas lawmakers passed legislation on May 21 by a vote of 101 to 42 to approve the establishment of a state-level BTC strategic reserve.
Navigating Web3 tides with focused insightsSource: Cryptoslate
Compiled by: Blockchain Knight
According to live proceedings from the House, Texas lawmakers passed legislation on May 21 by a vote of 101 in favor and 42 opposed, approving the establishment of a state-level BTC strategic reserve.
With amendments added by the House, the BTC-related bill SB 21 must now be re-approved by the Senate. The Senate previously passed an earlier version of the bill on March 5 by a vote of 25 in favor and 5 opposed.
After Senate approval, the bill will be sent to Governor Greg Abbott for final approval before it can take effect.
Once SB 21 reaches the governor's desk, he will have 20 days to sign or veto the bill. If the governor takes no action, the bill will automatically become law on the first working day after the 20-day period.
BTC Reserve
The proposal allows the state comptroller to purchase BTC using budget surplus funds, while adhering to the same reporting rules that apply to gold bars held in the Texas treasury.
Representative Giovanni Capriglione, one of the bill’s primary sponsors, told his colleagues during floor debate prior to voting: "Today is our moment to pass the strategic BTC reserve bill and cement Texas’ leadership in the digital age. Today, we embrace a modern asset with both traditional qualities and future potential."
He also stated that a BTC reserve would not only strengthen Texas' fiscal sovereignty but position the state as a forward-thinking region ready for the evolution of global finance.
If approved by the governor, Texas will become the third U.S. state—after Arizona and New Hampshire—to include public funds in a BTC strategic reserve framework.
Texas may only initiate its BTC purchase program after the comptroller publishes procurement guidelines in the Texas Register and signs a storage contract with a qualified entity located either within Texas or in a U.S. jurisdiction where BTC is recognized as property.
Legislative Process
The Senate passed SB 21 on March 6. Senator Charles Schwertner, the bill’s sponsor, argued that allocating a portion of Texas’ available cash to BTC could protect purchasing power during monetary shocks.
According to the bill text submitted to the governor, the comptroller must disclose the acquisition date, number of units, and total cost basis on a quarterly basis.
The bill does not set a dollar-denominated limit. However, it requires that the reserved BTC be stored with a qualified entity located either within Texas or in a U.S. jurisdiction where BTC is legally recognized as property.
The bill also directs the comptroller to study potential revenue sources related to network participation, including Lightning Network payment channels for collecting state fees.
These findings must be submitted to the House Appropriations Committee by January 2026 for review ahead of the 89th legislative session.
Editor's note: This article was updated at 21:27 GMT to clarify that the Senate must vote again on the House-amended version of the bill.
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