Texas Toward Establishing a State Bitcoin Reserve

Jakarta, Pintu News – The state of Texas is one step closer to becoming a pioneer in state-level cryptocurrency adoption after Bill SB 21, which allows for the establishment of a strategic Bitcoin (BTC) reserve, successfully passed its second reading in the Texas House of Representatives. If passed, Texas will become the third state in the United States to have an official Bitcoin reserve, following in the footsteps of New Hampshire and Arizona.

Bipartisan Support for State Bitcoin Reserves

SB 21 bill received broad cross-party support with a vote of 105 in favor and 23 against. The bill authorizes the Office of the Texas Comptroller of Public Accounts to manage the state’s Bitcoin reserves. The fund will be used to invest a portion of public funds in Bitcoin as part of Texas’ financial diversification strategy.

The bill also stipulates that digital assets included in the reserve must have a market capitalization of at least $500 billion, equivalent to approximately IDR8,209 trillion (1 USD = IDR16,418), and be maintained for two consecutive years. These provisions are meant to ensure only established and stable cryptocurrencies can be included in the portfolio.

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State Investment Strategy and Asset Value Protection

The establishment of a Bitcoin reserve by Texas aims to be a strategic move to hedge the state’s wealth amid economic uncertainty and potential inflation. Some proponents of this policy believe that Bitcoin can serve as an effective hedge because it is finite and not directly affected by the central government’s monetary policy.

This reserve fund will be managed by a state government agency, in collaboration with the state’s finance department and budget office. They will be responsible for the purchase, storage, and sale of Bitcoin and other eligible digital assets in order to effectively manage the state’s reserves.

Increased Global Interest in Bitcoin

Texas is not the only state pursuing the establishment of a Bitcoin reserve. Other states such as Utah, Oklahoma, and Kentucky are considering similar policies. This push was partly fueled by former President Donald Trump’s statements in favor of the idea of states having cryptocurrency reserves.

Outside of the United States, similar plans are emerging in Europe. A Ukrainian lawmaker expressed intentions to introduce a national Bitcoin reserve bill, with support from Binance as a strategic partner. In Ireland, former UFC fighter Conor McGregor even pushed for plans to establish a national Bitcoin reserve, stating that “crypto gives power back to the people.”

Potential Impact on Crypto Prices and Markets

The announcement of this bill has had an immediate impact on the cryptocurrency market. The price of Bitcoin reportedly surged to $106,000 or around Rp1.741 billion following news of the state’s support for the digital asset. This phenomenon reinforces the view that the involvement of governments and official institutions can boost market confidence and wider adoption of cryptocurrencies.

Although it still requires one more vote before it reaches the desk of Texas Governor Greg Abbott, who has been known to support crypto initiatives, it is likely that SB 21 will be passed into law. If so, Texas will cement its position as the center of crypto innovation in the US.

Conclusion

With bill SB 21 nearing passage, Texas has the potential to become a pioneer in the use of cryptocurrencies by state governments. This move reflects the global trend of making digital assets like Bitcoin part of public finance strategies. If managed carefully, this approach could pave the way for a broader and more strategic adoption of crypto in modern government systems.

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Reference:

• Cryptopolitan. Texas Bitcoin Reserve Bill Has Passed. Accessed May 21, 2025.
• Featured Image: Tech Crunch