Texas lawmakers are considering groundbreaking legislation that would establish the state as one of the first in the nation to maintain official cryptocurrency reserves, primarily focused on Bitcoin.
Senate Bill 21, introduced by Republican Senator Charles Schwertner of Georgetown, would authorize the Texas Comptroller's Office to acquire, manage, and trade Bitcoin and other qualifying cryptocurrencies. The bill specifies that eligible digital currencies must have a market capitalization of at least $500 billion - a threshold that currently only Bitcoin meets.
"People are reaching for alternatives to fiat currency because all fiat currency eventually goes to its natural worth, which is the paper it's printed on," Senator Schwertner stated during a recent hearing. He emphasized that just as Texas can invest in land and gold, the state should have the option to invest in Bitcoin, which he noted has been the best-performing asset over the past decade.
The bill, designated as a priority by Lieutenant Governor Dan Patrick, is currently pending in the Senate Business and Commerce Committee. With Republican majority support, it is expected to advance.
If passed, the legislation would allow the Comptroller to maintain Bitcoin reserves through both legislative allocations and qualified donations. However, some lawmakers expressed concerns about potential private sector influence. "I do have a great concern with billionaire tech bros owning branches of government," cautioned Democratic Senator Nathan Johnson.
The proposal arrives amid mixed signals from state leadership. While Governor Greg Abbott has pushed for Texas to become "the crypto capital," Lieutenant Governor Patrick recently called for increased oversight of crypto mining operations, citing concerns about strain on the state's power grid.
State Comptroller Glenn Hegar, who would oversee the proposed reserve, expressed measured skepticism about accepting cryptocurrency donations but indicated willingness to work within the legislation's final parameters.
The initiative positions Texas at the forefront of state-level cryptocurrency adoption, as several other states consider similar measures amid growing interest in digital currencies at the federal level.