Texas House Committee Advances Bill Requiring State BTC Reserves
Fhumulani Lukoto
- 2 min read
Key Takeaways
Legislative Momentum for Bitcoin Reserves
Senate Bill 21, which proposes that Texas hold Bitcoin as part of its financial reserves, has gained traction by passing a key House committee after clearing the Senate, bringing it one step closer to becoming law.
Texas Leading State-Level Crypto Integration
If enacted, the bill would make Texas the first US state to formally include Bitcoin in its treasury strategy, reinforcing its position as a national leader in cryptocurrency adoption and innovation.
Clear Partisan Divide in Support
The bill advanced through the House Committee on a 9-4 party-line vote, indicating strong political support from one side and highlighting the ongoing partisan divide over the role of digital assets in government finance.
In a significant step for state-level cryptocurrency policy in the United States, a Texas House committee passed a groundbreaking bill requiring the state to maintain part of its financial reserves in Bitcoin (BTC).
Overview
On May 7 2025, the Texas House Committee on Government Efficiency approved Senate Bill 21 in a 9-4 vote divided along party lines, without making any amendments. The bill had previously cleared the Texas Senate on March 6 2025, with a 25-5 vote. Now heading to the full Texas House for a vote, the bill underscores the state’s evolving approach to embracing digital assets as part of its economic and financial infrastructure.
House Bill 4903, introduced by Representative Giovanni Capriglione, proposes the creation of a digital asset reserve fund managed by the Texas State Comptroller. If passed into law, the bill would require a portion of the state’s surplus funds to be converted into BTC, which would be held securely as part of a diversified reserve strategy. The measure reflects growing interest in BTC’s potential as a hedge against inflation and an alternative store of value.
A Bold Step Toward Bitcoin Integration
The proposed legislation highlights Texas’s continuing emergence as a crypto-friendly jurisdiction. Thanks to its relatively low energy costs and supportive regulatory climate, Texas has attracted several major BTC mining companies in recent years. The new bill aims to go further by institutionalising BTC within state finance, aligning Texas with the broader global trend of digital asset adoption by public institutions.
During the committee hearing, lawmakers cited BTC’s scarcity, decentralisation, and resistance to inflation as key reasons for the proposed integration into the state’s financial strategy. Representative Capriglione argued that BTC could help protect the state’s finances from the risks posed by currency devaluation and traditional market volatility. The bill does not specify the exact percentage of reserves to be held in BTC, but emphasises gradual acquisition and prudent management by financial experts.
If the bill passes the full House vote, Texas would become the first US state to formally incorporate BTC into its balance sheet. This move likely signals to other states that digital assets can play a role in long-term fiscal planning, potentially setting off a domino effect across the country.
Risk Management and Public Transparency
Despite enthusiasm from BTC advocates, the bill has also raised concerns regarding volatility and risk exposure. Critics within the committee and from the public finance sector have questioned whether holding a volatile asset like BTC could jeopardise the stability of the state’s financial reserves. The bill includes several provisions to address these concerns to ensure transparency and risk management.
The digital asset reserve fund would be independently audited, and its performance would be reported publicly quarterly. It would also be managed with oversight from a panel of financial experts tasked with evaluating market conditions and making recommendations regarding buying or selling digital assets. To prevent unauthorised access or theft, the Comptroller’s office must adhere to strict security protocols, including multi-signature wallets and cold storage solutions.
These safeguards are designed to mitigate potential risks while allowing the state to explore the strategic benefits of BTC ownership. By taking a measured and accountable approach, lawmakers hope to build public trust in the initiative and provide a model for other states to follow.
What This Means for the Future of Crypto in the US
Texas’s BTC reserve bill could mark a turning point in how US states view digital assets. If the legislation passes, it would legitimise BTC as a speculative investment and a viable component of public financial policy. This could lead to similar legislation across other BTC-friendly states, especially those already engaged in digital asset mining or blockchain development.
In addition to potential economic benefits, the bill aligns with broader trends toward financial decentralisation and technological innovation. As central banks worldwide explore central bank digital currencies (CBDCs), Texas is signalling its preference for a decentralised, private-sector alternative.
As the bill moves to the full House for a vote, all eyes in the crypto community—and among state governments—will be watching. Whether or not it passes, the discussion highlights a growing recognition that Bitcoin and digital assets are no longer fringe innovations, but increasingly central to the future of finance.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.