Texas is making a big move into the world of Bitcoin. Senator Charles Schwertner has revamped his Bitcoin reserve bill, SB 21, removing a previous $500 million annual spending limit. This means the state could invest a much larger amount in Bitcoin and other cryptocurrencies.
A Much Bigger Plan
The updated bill allows Texas to buy, sell, and manage cryptocurrencies as investments, not just hold them. It opens the door to investing in other digital assets too, but only those with a market cap of at least $500 billion over the past year (Bitcoin currently meets this criteria). This is a significant change from the previous version, SB 778, which was much more restrictive.
High-Priority Bill
Senator Schwertner is thrilled, thanking Lieutenant Governor Dan Patrick for making SB 21 a top priority bill for 2025. He sees this as a way to boost innovation, growth, and financial freedom for Texas.
Experts Weigh In
The changes are getting rave reviews. Pierre Rochard, VP of Research at Riot Platforms, called the new bill “very bullish,” highlighting the removal of the spending cap. Dennis Porter, CEO of the Satoshi Act Fund, also emphasized the bill’s importance, saying it’s a major priority for the Lieutenant Governor’s office.
Texas Leads the Way
Texas is leading the charge among US states exploring cryptocurrency legislation. While other states like Arizona and Utah are also considering similar bills, and North Carolina is looking at Bitcoin ETFs, Texas is potentially on the verge of becoming the first state with a substantial Bitcoin reserve. This could significantly impact how states view digital assets in their long-term financial strategies.
The Bottom Line
With SB 21, Texas is signaling its strong belief in Bitcoin and cryptocurrencies. The removal of the spending cap opens the door for potentially massive state-level investments, solidifying Texas’ position as a leader in cryptocurrency adoption.
