Texas Bitcoin Reserve Bill SB 21 Advances—Final Approval Possible Soon

Texas’ SB 21, aimed at establishing a state-level Bitcoin Reserve, has passed its second reading in the House and awaits one more vote and the governor’s signature. Encouraged by bipartisan support and mirroring other states’ successful models, the bill faces a tight legislative deadline. Similar proposals in the U.S. have faltered, but Texas’ strong support may lead this one to success.

The Texas Senate has made headlines as SB 21, the proposal to establish a Bitcoin Reserve at the state level, sailed through its second reading in the House with impressive backing. The bill now needs just one more vote and then the signature of Governor Abbott to become law, which could happen soon given the legislative timeline. This legislation pulls from previous successful models, notably New Hampshire’s framework for token inclusions in their Reserve.

In a significant move, Texas’ SB 21 aims to foster a state-level Bitcoin Reserve for the now popular cryptocurrency. The push for this reserve gained momentum after President Trump initially endorsed the concept, spurring states like Texas to act. From the get-go, Lieutenant Governor Dan Patrick made creating a Bitcoin Reserve a key objective for the state.

The bill’s journey has been relatively swift, gaining traction through various committees and the Senate. Recent votes show strong support, with SB 21 passing the second reading 105-23. One of the well-known amendments included extending the duration a digital asset’s market cap must meet the threshold for Reserve inclusion from 12 to 24 months, making it a bit tougher for new altcoins seeking entry,

What stands out about SB 21 is how it mirrors the attributes of similar proposals across the United States, especially New Hampshire’s successful legislation. While on the surface it focuses on Bitcoin, SB 21 also accommodates alternative assets, affirming the requirement of maintaining a $500 billion market cap for two years.

Although the bill’s progress is promising, there remains a crucial deadline. Texas’ legislative session wraps up on June 2, leaving SB 21 needing a final vote before the gavel drops. Encouragingly, with the overwhelming support it’s seen, it may only be a matter of time before the measure hits the governor’s desk.

With Greg Abbott known for his advocacy of Bitcoin, the final step may just unfold this week. Yet, caution is warranted—Texas isn’t the only state eyeing a Bitcoin Reserve. For instance, Arizona’s governor signed a law for BTC holdings but later vetoed the actual purchase bills. Florida demonstrated initial bipartisan support but has struggled in getting its Reserve bills to fruition.

These developments underscore that while optimism is warranted, it’s essential not to overlook the pitfalls. Many state proposals for Bitcoin Reserves have faltered, making SB 21 a notable potential outlier if it successfully passes. Yet the success of legislation like the GENIUS Act amid resistance is a reminder of the growing political backing for the crypto landscape in the U.S.