Texas Lawmakers Reintroduce BTC Reserve Bill with Expanded Investment

• Texas lawmakers have reintroduced Senate Bill 21 to establish a Bitcoin reserve and expand investment strategies.
• The bill removes strict oversight, allowing financial experts to manage state crypto investments.
• Texas joins several U.S. states exploring Bitcoin reserve proposals, signaling growing legislative interest in cryptocurrency investments nationwide.

Texas legislators have reintroduced a bill aimed at establishing a state-controlled Bitcoin reserve, including provisions for broader digital assets investments. The revised legislation, Senate Bill 21 (SB 21), replaces the earlier version and introduces more flexible investment strategies. State Senator Charles Schwertner announced the bill’s refiling on February 12, emphasizing Texas’ potential to lead in financial innovation.

Legislation Expands Beyond Bitcoin Holdings

The updated bill builds on SB 778, a proposal introduced in January that strictly limited state cryptocurrency reserves to Bitcoin. SB 21 expands this framework by allowing Texas to buy, sell, and actively manage cryptocurrency investments.

A key provision in the revised bill permits investments in other digital assets, provided they have maintained a market capitalization of at least $500 billion over the past twelve months. Presently, only Bitcoin meets this requirement, but the framework allows for future expansion if additional cryptocurrencies reach this threshold.

Lieutenant Governor Dan Patrick has ranked the Bitcoin reserve bill among the Senate’s top 40 legislative measures. Satoshi Action Fund founder Dennis Porter confirmed its significance, stating that the lieutenant governor’s office had provided multiple assurances regarding its priority status.

The revised bill grants more decision-making authority to financial experts rather than state legislators. Unlike SB 778, which imposed strict oversight and funding limitations, SB 21 provides flexibility in investment management. The $500 million annual purchasing cap included in the previous bill has been removed, allowing the legislature to allocate funds at its discretion.

State-Level Crypto Legislation Gains Momentum

Texas is one of 19 U.S. states considering cryptocurrency-related legislation. Other states have also introduced Bitcoin reserve proposals, including Florida, Utah, and Arizona.

Florida Republican Senator Joe Gruters recently presented a bill proposing that a share of state funds be allocated to BTC and other digital assets as an inflation barrier. Utah’s House Bill 230, introduced by Representative Jordan Teuscher, has cleared the House of Representatives and is advancing to the Senate.

Arizona lawmakers have also progressed with crypto-related legislation, while North Carolina is considering permitting state investments in Bitcoin exchange-traded products. Meanwhile, North Dakota has decided against moving forward with a similar proposal.