Texas Senate approves plan to hold Bitcoin in State Reserves

The Texas Senate has voted 25-5 to pass Senate Bill 21 (SB-21), which allows the state of Texas to buy, hold, and manage Bitcoin—potentially along with other cryptocurrencies. 

The goal? To protect Texas’ money from inflation and economic uncertainty. If the bill becomes law, Texas would be the first U.S. state to officially hold cryptocurrency in its reserves.

This move comes just a day before President Donald Trump is set to sign an executive order, launching a national Bitcoin reserve for the U.S. Texas lawmakers see this as a chance to get ahead, with supporters arguing that Bitcoin is like digital gold—holding its value even when traditional money loses purchasing power.

If the bill passes all the necessary steps, the state’s comptroller will be in charge of buying, selling, and securely managing Texas’ Bitcoin holdings. 

The idea is to give the state more financial independence and protect it from economic downturns. Some lawmakers even believe this could position Texas as a leader in the growing cryptocurrency world.

But it’s not a done deal yet. The bill still needs approval from the Texas House of Representatives and then the governor’s signature. The House has until May 24, 2025, to review and vote on it. If all goes well, Texas could start accumulating bitcoin shortly after.

Read also: New Hampshire bitcoin bill advances with overwhelming approval

Not everyone is on board. The five senators who voted against the bill worry about Bitcoin’s unpredictable price swings. Critics argue that its value can rise and fall too quickly, making it a risky asset for government funds. 

Others question whether the state should be involved in cryptocurrency at all. Still, the overwhelming Senate vote suggests that most lawmakers are willing to take the risk.

This move is part of a bigger shift. With President Trump’s executive order giving Bitcoin more legitimacy at the federal level, Texas—known for its independent spirit—is jumping in early. If the bill passes, it could encourage other states to follow, bringing cryptocurrency into mainstream government finance.