Financial Insights That Matter
The Texas Senate passed the Bitcoin (BTC) strategic reserve bill SB-21 in a 25-5 vote on March 6, following a fierce debate on the state Senate floor.
Texas State Senator Charles Schwertner, who introduced the legislation, argued for the bill and said it would help Texas shore up its balance sheet with a valuable, scarce asset.
“We don’t have stacks of dollar bills and safes like we did in medieval times. What we have is digital currency,” Senator Schwertner told the floor.
Pro-Bitcoin lawmakers also assuaged fears that Bitcoin was a direct competitor to the US dollar as a global reserve currency, adding that BTC was more similar to gold and a hedge against inflation. Schwertner said:
“I would argue, and put forth, that because of central intervention and manipulation of the supply of currency, in this case, the US dollar, the ability to spend money through printing money has caused the dollar to fall in value and fall in worth.”
This monetary inflation has caused people to lose faith in the US dollar, the Texas state senator added.
The bill must still be signed by the governor to be passed into law, and if SB-21 is enacted, Texas will become the first state in the United States to have a digital asset strategic reserve.
Texas state senator Charles Schwertner arguing for the merits of SB-21. Source: Bitcoin Laws
Related: New Hampshire Bitcoin bill passes through House committee in a landslide
Texas Strategic Bitcoin Reserve bill gets overhaul
The Texas Strategic Bitcoin Reserve legislation was introduced in January as a Bitcoin-only bill that did not mention the acquisition of other digital assets.
However, in February, the bill was refiled with broader language to reflect the potential inclusion of other digital assets.
Texas lawmakers overhauled the bill following US President Donald Trump’s Jan. 23 executive order directing a commission to study the feasibility of a “digital asset stockpile,” which would likely include multiple cryptocurrencies.
The first page of SB-21, which seeks to establish a strategic Bitcoin and digital asset reserve in Texas. Source: Texas Senate
States lead the charge toward Bitcoin reserves
Wyoming Senator Cynthia Lummis, one of the most vocal proponents of a US Bitcoin strategic reserve, recently told an audience at the Bitcoin Investor Week conference in New York that states will likely adopt Bitcoin reserves before the federal government does.
A map showing the progress of strategic reserve bills in the 50 US states. Source: Bitcoin Laws
Lummis, who introduced the Bitcoin Act of 2024 to the US Senate in July 2024, argued that federal adoption would be slower than state adoption due to bureaucratic and procedural hurdles.
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