- Texas proposes a $500M annual Bitcoin reserve, aiming to lead U.S. state crypto adoption efforts.
- Lawmakers fast-track SB 21 as Texas and Arizona compete to become the first Bitcoin-focused state.
- The Bitcoin reserve plan includes quarterly audits, cold storage, and strict multi-signature security.
On April 23, 2025, the Texas House of Representatives will hold a hearing on the Strategic Bitcoin Reserve Act (SB 21). The proposed legislation outlines a $500 million annual allocation to acquire and custody Bitcoin within the state’s financial framework. This effort positions Texas at the forefront of digital asset policy among U.S. states.
Lawmakers Fast-Track Crypto Policy as State Competition Intensifies
The bill advanced rapidly through the Senate, which took nine legislative actions on March 6 alone, including suspending several procedural rules. Senators read the bill three times, passed it, and completed a final engrossment all within one calendar day. Marty Party stated in an update that “the race for first State is between Arizona and Texas,” pointing to the April 23 hearing as a pivotal moment.
The House received the bill on March 11 and read it for the first time on April 9, showing a more measured pace than the Senate. On the same day, the bill was referred to the Committee on Delivery of Government Efficiency. It was later reassigned to the House Insurance Committee, which will preside over the upcoming hearing.
The Texas Legislature currently has seven active blockchain-related bills, though three remain stalled in earlier phases. SB 21, in contrast, has progressed without delay, reflecting clear support among key lawmakers. Legislative momentum and national interest have both intensified as a result.
Structure of Bitcoin Reserve Outlined in Official Disclosures
As reported by Coin World, the bill allocates $500 million per year toward strategic Bitcoin accumulation using regulated custodians. The framework mandates the use of cold wallet infrastructure, secured under Texas jurisdiction, with multi-signature access control. State agencies will be required to audit and publicly report balances and activities every quarter.
The reserve will operate with a long-term purchase strategy designed to reduce market impact and avoid short-term volatility exposure. The legislation also includes operational guidelines for converting Bitcoin into fiat when necessary for liquidity. Agencies may test interdepartmental payments using Bitcoin under a sandbox approach for blockchain integration.
In addition to establishing custody protocols, the bill emphasizes transparency through continuous reporting and third-party verification. Scheduled audits will ensure public accountability and help protect the reserve from mismanagement or security breaches. These safeguards aim to balance innovation with fiscal oversight.