Texas is on the verge of becoming the third U.S. state to establish a state-managed Bitcoin. 

The Texas Strategic Bitcoin Reserve and Investment Act, SB 21, was approved by the House of Representatives with a vote of 101-42. The bill now heads to Governor Greg Abbott’s desk for final approval.

SB 21 would authorize the state comptroller to invest in Bitcoin and, potentially, other cryptocurrencies with a market cap exceeding $500 billion over the past 12 months. 

Currently, Bitcoin is the only asset that qualifies. The legislation also directs the creation of a formal Bitcoin reserve, positioning the state to diversify its financial strategy with digital assets.

The bill’s sponsor, State Senator Charles Schwertner, and House advocate Rep. Giovanni Capriglione, framed the initiative as a move to secure Texas’s leadership in digital innovation. 

State’s embrace of Bitcoin

If signed, Texas will join New Hampshire and potentially Arizona in establishing a Bitcoin reserve. However, not all states have embraced the idea. 

Governors in Arizona and Montana recently vetoed or blocked similar proposals, citing the volatility of cryptocurrency markets.

Texas, which boasts a $2.7 trillion economy—ranking eighth globally if it were a country—has already positioned itself as a crypto-friendly state. Governor Abbott has previously expressed strong support for digital assets and accepted Bitcoin donations for his political campaigns.

The bill’s passage comes amid renewed momentum for Bitcoin, which recently hit a record high above $109,000.