Texas Senate passes Bitcoin reserve bill with $500B clause

The Texas Senate has approved Senate Bill 21 (SB-21) on March 6, advancing the state’s plan to establish a Bitcoin (CRYPTO:BTC) strategic reserve.

The bill, introduced by Senator Charles Schwertner, passed with a 25-5 vote and now awaits approval from the Texas House and the governor to become law.

SB-21 proposes creating a Bitcoin reserve fund managed by the Texas Comptroller of Public Accounts.

The reserve would be separate from the state treasury, allowing for independent management.

The legislation authorises the comptroller to acquire, trade, or sell Bitcoin and other digital assets deemed prudent investments.

To ensure stability, cryptocurrencies included in the reserve must have maintained a market capitalisation of at least $500 billion over the prior year.

Supporters of the bill argue that Bitcoin can act as a hedge against inflation and economic volatility.

Senator Schwertner emphasised that “Bitcoin is more akin to gold” and could enhance Texas’ financial resilience.

He added that monetary inflation has eroded trust in traditional currencies, making digital assets a strategic alternative.

During a February hearing, Bitcoin advocate Pierre Rochard of Riot Platforms highlighted Bitcoin’s long-term value potential.

“Now is the perfect time to make a strategic investment,” Rochard stated.

If enacted, Texas would become the first U.S. state to establish a digital asset reserve.

Lieutenant Governor Dan Patrick has identified SB-21 as a legislative priority for 2025.

In parallel, New York lawmakers introduced a bill on March 5 targeting memecoin rug pulls—fraud schemes where insiders abandon tokens after investor purchases.

Assemblymember Clyde Vanel proposed criminal penalties for such scams, which often result in significant financial losses.

Fideum CEO Anastasija Plotnikova supported stricter regulation, stating that these activities “should fall firmly within the jurisdiction of law enforcement agencies.”

At the time of reporting, the Bitcoin (BTC) price was $79,454.67.