Texas Senate Approves Bill to Establish State Bitcoin Reserve

The Texas Senate has approved legislation that could make Bitcoin a state-held asset, joining a growing number of states exploring cryptocurrency as a hedge against inflation. Senate Bill 21 (SB 21), authored by Senator Charles Schwertner (R-Georgetown), creates the Texas Bitcoin Reserve under the administration of the Texas Comptroller.

Schwertner emphasized Bitcoin’s role as a modern store of value, comparing it to traditional assets like gold and land. “Texas cannot expect to put its money in a one-percent savings account and keep up with inflation,” he said. “We need to be forward-thinking as individuals are forward-thinking when it comes to financial assets.”

The bill does not allocate funding but establishes a framework for the reserve. Lawmakers would determine appropriations through the budget process, and Schwertner is pursuing a $16 million rider in the Senate’s budget proposal to fund the initiative. The Texas Bitcoin Reserve will hold Bitcoin and other cryptocurrencies with a market capitalization of at least $500 billion and will be managed with guidance from a Strategic Bitcoin Reserve Advisory Committee. A biennial report will be required to detail its holdings.

Lieutenant Governor Dan Patrick issued a statement following the bill’s bipartisan passage, aligning Texas’ cryptocurrency stance with President Donald Trump’s vision for digital assets. “President Trump has stated unequivocally that he intends to make the United States the cryptocurrency capital of the world. His visionary leadership on Bitcoin and digital assets has paved the way for rapid American innovation, and Texas is leading the way,” Patrick stated.

He added, “Creating the Texas Bitcoin Reserve is a bold step for other states to follow. I stand with President Trump and hope to make Texas the epicenter of America’s digital future.”

Foreign Land Ownership Restrictions Considered

Separately, the Senate State Affairs Committee reviewed Senate Bill 17 (SB 17), authored by Senator Lois Kolkhorst (R-Brenham), which seeks to restrict land ownership by foreign governments, entities, and individuals from adversarial nations. The bill defines adversary nations as those designated as national security threats in the past three annual assessments by the Director of National Intelligence, currently including China, Russia, North Korea, and Iran.

“The bill ensures that food, energy, and national security are protected,” Kolkhorst said.

A similar bill passed the Senate last session but stalled in the House due to concerns about unintentional impacts on individuals with ties to these countries. SB 17 addresses those concerns by specifying that restrictions apply to individuals “domiciled” in adversary nations rather than based on citizenship status. The bill prohibits foreign ownership but allows investment and leasing of property and does not apply to residential homesteads or legal U.S. residents.

Kolkhorst noted that since the last session, 22 states have enacted regulations on foreign ownership of real estate, and the U.S. House has passed language prohibiting hostile foreign ownership of agricultural land. “This has obviously been talked about quite a lot over the last year,” she said.

Both SB 21 and SB 17 will move forward in the legislative process as Texas lawmakers consider their impact on the state’s financial and security landscape.