Texas Bitcoin Reserve Wins 105-23 Vote – Could a $2.7T State Ignite Crypto Arms Race?

Key Takeaways: Texas joins New Hampshire as the second U.S. state to legalize a Bitcoin reserve, pending the governor’s approval. SB 21 allows the comptroller to buy only cryptos with a $500B+ market cap. Corporate Bitcoin holdings outpace governments, but Texas could shift the balance if the reserve grows. On May 21, Texas lawmakers passed Senate Bill 21 (SB 21). The bill, backed by both parties, paves the way for a state Bitcoin reserve and is awaiting final approval. Texas House passes SB 21 to establish a Strategic #Bitcoin Reserve. The bill cleared its final vote 101-42. pic.twitter.com/6li1OaumPl — TFTC (@TFTC21) May 21, 2025 The bill easily passed the House with strong support, 105-23 in its second reading and 101-42 in its third. This rare show of unity suggests Governor Greg Abbott will likely sign it. If approved, Texas will become the second U.S. state (after New Hampshire ) with a Bitcoin reserve. Abbott is expected to support the bill. He has backed crypto for years, even accepting crypto campaign donations since 2014, in a bid to make Texas “the crypto capital.” Observers doubt he’ll say no. How SB 21 Reshapes Texas’s Financial Future with Bitcoin SB 21 gives the state comptroller the power to buy and hold Bitcoin and any other cryptocurrency whose market capitalization tops $500 billion for 12 consecutive months, but right now, only Bitcoin meets the bar. The comptroller would manage the reserve, invest surplus funds, and cover administrative expenses with proceeds generated by the holdings. However, the Legislative Budget Board admits it’s still unclear how big the reserve could be or what financial impact it might have. Representative Giovanni Capriglione, who pushed the bill in the House, called the vote “a pivotal moment in securing Texas’s leadership with a modern store of value for future promise.” Supporters argue that adding Bitcoin to the treasury diversifies state assets and shows Texas’s openness to blockchain innovation. With a $2.7 trillion economy and a fast-growing Bitcoin mining industry, Texas would become the largest government in the world to hold Bitcoin. The Crypto Divide: Which States Are Leading and Why Others Are Hesitant America’s states are divided on Bitcoin as some have rushed to embrace it, while others continue to push back hard. On May 6, New Hampshire blazed the trail, becoming the first state to let its treasury hold Bitcoin. Now, Texas stands ready to follow. North Carolina is following suit with nearly identical House and Senate proposals currently awaiting floor votes, while crypto-friendly Wyoming is considering legislation that would grant its treasurer direct Bitcoin purchasing authority. However, resistance persists in other states. New Hampshire just became the first U.S. state to legally adopt Bitcoin as a strategic reserve asset. HB 302 lets the treasurer park up to 5 % in Bitcoin. Game on. pic.twitter.com/ACabIV3zxe — Swan (@Swan) May 6, 2025 In Arizona, the governor rejected a BTC reserve proposal, while Florida’s legislature withdrew two similar measures. Montana said no, fearing the wild price swings of the crypto market. Across the country, 47 Bitcoin bills sit on lawmakers’ desks in 26 states. About half are still under active consideration. Meanwhile, in Washington, 13 proposals float the idea of a national Bitcoin vault filled with seized coins. Treasurers and officials now weigh custody, compliance, and price swings. Yet more states (and countries) indicate that holding Bitcoin as a strategic asset has moved from a fringe idea to a serious fiscal debate. Bitcoin Reserve — Mayer Mizrachi (@Mayer) May 16, 2025 Internationally, Panama City Mayor Mayer Mizrachi teased plans for a municipal Bitcoin reserve after meeting El Salvador advisers Max Keiser and Stacy Herbert, posting “Bitcoin Reserve” on X. Bitcoin’s Biggest Buyers: Corporations vs. Governments—Who’s Winning? Kyiv is prepping its Bitcoin reserve plans. MP Yaroslav Zhelezniak confirmed that a draft bill to establish a state Bitcoin reserve is nearly complete. Crypto exchange Binance supports its efforts as the country seeks to strengthen its financial resilience during its war with Russia. Meanwhile, corporations continue to snap up Bitcoin at a record pace. Strategy, the pioneer of the corporate BTC plan, recently upped its fundraising targets to $84 billion, planning fresh equity and debt sales to expand the largest corporate BTC treasury. Their latest purchase of 13,390 BTC for $1.34 billion happened on May 12. JUST IN: Michael Saylor said Strategy is doubling their fundraising to raise $84 billion to buy more #Bitcoin pic.twitter.com/NPg0E5GLF2 — Bitcoin Magazine (@BitcoinMagazine) May 1, 2025 Earlier, Japanese firm Metaplanet spent ¥18.4 billion ($126 million) on 1,241 BTC (within the same period) and lifted its stockpile to 6,796 Bitcoin. These moves reflect a broader pattern. Publicly listed firms boosted their combined reserves by 16.1% in Q1 2025, taking corporate holdings to roughly 688,000 BTC, or about 3.3% of the asset’s total supply. Governments are catching up. The U.S. leads stakeholders, with global nations estimated to control between 463,741 and 527,737 BTC (2.2%–2.5% of supply). Frequently Asked Questions(FAQs) Could Texas’s Bitcoin reserve face federal regulatory hurdles? Federal agencies might challenge it. The SEC could argue that Bitcoin qualifies as a security, while the Treasury may raise monetary policy concerns. However, states traditionally control their reserves, setting up a potential showdown over financial sovereignty. Does Texas’s move pressure other states to accelerate crypto adoption? Absolutely. Texas just upped the ante. Crypto-friendly states will scramble to keep pace, while skeptics dig in, and this domino effect could reshape state-level crypto policy nationwide within months. The post Texas Bitcoin Reserve Wins 105-23 Vote – Could a $2.7T State Ignite Crypto Arms Race? appeared first on Cryptonews .