- The Texas Senate approved a bill to create a Bitcoin reserve to protect state funds from inflation and economic risks.
- More states are exploring digital asset reserves as a way to secure public funds and reduce reliance on traditional money.
- President Trump proposed a national crypto reserve but experts debate if other cryptocurrencies should be included or not.
The Texas Senate has approved the Bitcoin Strategic Reserve Bill SB-21 through a 25-5 vote. The enacted legislation will allow Texas to include Bitcoin within its official financial reserves. The proposed bill would make Texas the first state in the United States to create a digital asset reserve fund. The bill was introduced to mitigate inflation concerns and the declining value of the U.S. dollar.
The bill focused only on Bitcoin initially. However, lawmakers later expanded it to include other digital assets. This adjustment followed President Donald Trump’s executive order directing federal agencies to explore a national digital asset reserve. Texas lawmakers cited Bitcoin’s history of withstanding financial cycles as a reason for its inclusion in state reserves.
State-Level Efforts to Integrate Cryptocurrency
Texas is among several states considering cryptocurrency investments. New Hampshire recently advanced House Bill 302 with a strong 16-1 committee vote. The bill permits the state to allocate up to 5% of public funds into Bitcoin and other precious metals. Meanwhile, Utah is nearing approval for its own digital asset bill but faces a tight deadline before the legislative session ends.
Several other states have proposed similar measures. Some encountered political resistance, while others failed to gain enough support. Despite these setbacks, interest in state-backed cryptocurrency reserves is growing. Lawmakers argue that digital assets offer protection against inflation and economic uncertainty.
Federal Influence on State Cryptocurrency Policies
Bitcoin state-level reserve proposals emerge from ongoing federal debates about cryptocurrency adoption. President Trump proposed creating a national crypto reserve that could feature different digital assets like XRP, Solana and Cardano. Industry experts remain divided about whether to integrate alternative cryptocurrencies into Bitcoin-based arrangements.
Supporters of Bitcoin-only reserves believe it aligns more closely with traditional store-of-value assets like gold. Opponents raise concerns about regulatory challenges and digital asset volatility. With Texas taking the lead, more states may soon follow in establishing their own digital asset reserves.