Texas Bitcoin Reserve Wins 105-23 Vote – Could a $2.7T State Ignite Crypto Arms Race?

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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May 22, 2025

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On May 21, Texas lawmakers passed Senate Bill 21 (SB 21). The bill, backed by both parties, paves the way for a state Bitcoin reserve and is awaiting final approval.

The bill easily passed the House with strong support, 105-23 in its second reading and 101-42 in its third. This rare show of unity suggests Governor Greg Abbott will likely sign it.

If approved, Texas will become the second U.S. state (after New Hampshire) with a Bitcoin reserve. Abbott is expected to support the bill. He has backed crypto for years, even accepting crypto campaign donations since 2014, in a bid to make Texas “the crypto capital.” Observers doubt he’ll say no.

How SB 21 Reshapes Texas’s Financial Future with Bitcoin

SB 21 gives the state comptroller the power to buy and hold Bitcoin and any other cryptocurrency whose market capitalization tops $500 billion for 12 consecutive months, but right now, only Bitcoin meets the bar.

The comptroller would manage the reserve, invest surplus funds, and cover administrative expenses with proceeds generated by the holdings. However, the Legislative Budget Board admits it’s still unclear how big the reserve could be or what financial impact it might have.

Representative Giovanni Capriglione, who pushed the bill in the House, called the vote “a pivotal moment in securing Texas’s leadership with a modern store of value for future promise.”

Supporters argue that adding Bitcoin to the treasury diversifies state assets and shows Texas’s openness to blockchain innovation.

With a $2.7 trillion economy and a fast-growing Bitcoin mining industry, Texas would become the largest government in the world to hold Bitcoin.

The Crypto Divide: Which States Are Leading and Why Others Are Hesitant

America’s states are divided on Bitcoin as some have rushed to embrace it, while others continue to push back hard. On May 6, New Hampshire blazed the trail, becoming the first state to let its treasury hold Bitcoin. Now, Texas stands ready to follow.

North Carolina is following suit with nearly identical House and Senate proposals currently awaiting floor votes, while crypto-friendly Wyoming is considering legislation that would grant its treasurer direct Bitcoin purchasing authority. However, resistance persists in other states.

In Arizona, the governor rejected a BTC reserve proposal, while Florida’s legislature withdrew two similar measures. Montana said no, fearing the wild price swings of the crypto market.

Across the country, 47 Bitcoin bills sit on lawmakers’ desks in 26 states. About half are still under active consideration. Meanwhile, in Washington, 13 proposals float the idea of a national Bitcoin vault filled with seized coins.

Treasurers and officials now weigh custody, compliance, and price swings. Yet more states (and countries) indicate that holding Bitcoin as a strategic asset has moved from a fringe idea to a serious fiscal debate.

Internationally, Panama City Mayor Mayer Mizrachi teased plans for a municipal Bitcoin reserve after meeting El Salvador advisers Max Keiser and Stacy Herbert, posting “Bitcoin Reserve” on X.

Bitcoin’s Biggest Buyers: Corporations vs. Governments—Who’s Winning?

Kyiv is prepping its Bitcoin reserve plans. MP Yaroslav Zhelezniak confirmed that a draft bill to establish a state Bitcoin reserve is nearly complete. Crypto exchange Binance supports its efforts as the country seeks to strengthen its financial resilience during its war with Russia.

Meanwhile, corporations continue to snap up Bitcoin at a record pace.

Strategy, the pioneer of the corporate BTC plan, recently upped its fundraising targets to $84 billion, planning fresh equity and debt sales to expand the largest corporate BTC treasury.

Their latest purchase of 13,390 BTC for $1.34 billion happened on May 12.

Earlier, Japanese firm Metaplanet spent ¥18.4 billion ($126 million) on 1,241 BTC (within the same period) and lifted its stockpile to 6,796 Bitcoin.

These moves reflect a broader pattern. Publicly listed firms boosted their combined reserves by 16.1% in Q1 2025, taking corporate holdings to roughly 688,000 BTC, or about 3.3% of the asset’s total supply.

Governments are catching up. The U.S. leads stakeholders, with global nations estimated to control between 463,741 and 527,737 BTC (2.2%–2.5% of supply).

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