The Texas Strategic Bitcoin Reserve Act was read on Feb. 7 and referred to the Senate Finance Committee for review. Introduced by Senator Charles Schwertner, Senate Bill 778 aims to establish a state-controlled Bitcoin reserve, reinforcing Texas’ position as a leader in digital asset innovation while providing a financial safeguard.
Under the proposed legislation, the reserve serves two primary functions:
- Allowing Texas to own and hold Bitcoin as a financial asset.
- Enabling individuals, including Texas residents, to donate Bitcoin to the state, fostering shared ownership and investment in the state’s financial future.
Security and Oversight
The bill includes strict security and management provisions. The Texas Comptroller’s Office would oversee the reserve, ensuring secure custody and storage. The legislation mandates that the comptroller maintain custody of all BTC in the reserve, emphasizing the state’s responsibility in safeguarding the asset. To prevent unauthorized access, cold storage solutions would be used, and regular audits would ensure transparency.
The bill also prohibits Bitcoin acquisitions from foreign entities or individuals linked to illegal activities. In emergencies, the governor or the Legislative Budget Board could authorize the sale or transfer of BTC, directing the proceeds to the state treasury.
Advisory Committee and Public Recognition
To provide oversight and strategic recommendations, the legislation proposes the formation of the Texas Strategic BTC Reserve Advisory Committee, composed of state legislators and financial experts. Additionally, individuals who donate BTC to the reserve would be recognized through a public acknowledgment program.
State funding for Bitcoin acquisitions would be capped at one percent of the unencumbered general revenue balance per biennial cycle. If passed with a two-thirds majority, the bill would take effect immediately; otherwise, it would be enacted on Sept. 1, 2025.
Expansion to Other Cryptocurrencies: SB 21
Texas lawmakers have since refiled the Bitcoin reserve bill under a slightly different name, broadening its scope to include investments in other qualifying cryptocurrencies.
“SB 21 would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom,” Senator Schwertner stated on Feb. 12.
He also thanked Lieutenant Governor Dan Patrick for prioritizing the bill, placing it among the Senate’s top 40 priority bills.
Dennis Porter, founder of the Satoshi Action Fund, confirmed the bill’s significance, stating on X, “I’ve been told by the Lt. Governor’s office multiple times that this bill is a major priority.”
Key Differences Between SB 778 and SB 21
While SB 778 strictly allows the state to buy and hold Bitcoin as a strategic asset, SB 21 expands the reserve’s function by granting the state the ability to actively invest, buy, sell, and manage cryptocurrency assets for financial stability and economic resilience.
The revised bill also permits investments in other digital assets, provided they have maintained a market capitalization of at least $500 billion over the past twelve months—a criterion currently met only by Bitcoin.
Additionally, SB 21 shifts greater control to financial experts, whereas SB 778 places decision-making in the hands of state legislators and enforces stricter security, oversight, and funding requirements.
Industry and Legislative Reactions
Pierre Rochard, vice president of research at Riot Platforms, called the new bill “very bullish,” emphasizing that it removes the previous $500 million annual purchase cap. “The legislature can appropriate as much as it wants to save BTC,” he noted.
Currently, 19 U.S. states have introduced similar bills. Arizona and Utah have advanced their legislation beyond the House committee level.
The most recent state to propose a cryptocurrency bill is North Carolina, which introduced legislation to allow state investment in Bitcoin exchange-traded products. Meanwhile, North Dakota has rejected a similar proposal.
