Texas Senator Charles Schwertner has refiled a strategic Bitcoin reserve bill under the new designation “SB 21,” removing the previous annual purchasing cap of $500 million and paving the way for significantly larger state-level investments in Bitcoin (BTC). The refiled legislation also broadens its reach to include other crypto assets that meet a specified market capitalization threshold.
Texas’ Bitcoin Reserve Bill Is ‘Very Bullish’
The latest version of the bill, announced on February 12, replaces Schwertner’s earlier proposal, SB 778, which allowed Texas to buy and hold BTC strictly as a strategic asset. SB 21, by contrast, permits the state to actively buy, sell, and manage crypto assets as an investment vehicle. Crucially, it enables investments in other digital assets that have maintained a market capitalization of at least $500 billion over the past twelve months—though currently only Bitcoin qualifies.
In a public statement made on X, Senator Schwertner expressed his gratitude to Lieutenant Governor Dan Patrick for placing SB 21 among the Senate’s top 40 priority bills for 2025: “Thank you to Lt. Governor Dan Patrick for designating my bill to establish the Texas Strategic Bitcoin Reserve as one of the Senate’s top 40 priority bills. SB 21 would make our state the first to establish a Strategic Bitcoin Reserve & drive innovation, growth, & financial freedom!”
The original legislation, SB 778, had imposed a $500 million annual limit on Bitcoin purchases and had more restrictive oversight and security requirements. With SB 21, those limits have been removed, and there is no longer a strict cap on how much the legislature can allocate for digital asset acquisitions. Observers note that while the investment mandate is broader, SB 21 leaves more control to financial experts rather than state lawmakers directly, as was the case with SB 778.
Pierre Rochard, Vice President of Research at Riot Platforms (NASDAQ: RIOT), also took to X to praise SB 21’s potential: “NEW: the new legislative text for the Texas Strategic Bitcoin Reserve, SB 21, is very bullish! It removes the annual buying limit of $500 million, the legislature can appropriate as much as it wants to save BTC.”
The move toward establishing a state-controlled Bitcoin reserve has garnered significant attention among Texas politicians and crypto advocates. Lieutenant Governor Dan Patrick previously announced the measure would be a high-priority item, and Schwertner’s reintroduction of the bill confirms the legislature’s commitment to exploring cryptocurrency as part of the state’s fiscal strategy.
Dennis Porter, CEO and founder of the Satoshi Act Fund, emphasized the importance of the bill: “MASSIVE: A bill to create a ‘Strategic Bitcoin Reserve’ in Texas has been refiled by Dr Schwertner. I’ve been told by the Lt. Governor’s office multiple times that this bill is a major priority.”
Texas is one of 19 US states currently evaluating legislation around crypto assets. Arizona and Utah have advanced similar bills beyond House committee levels, while North Dakota has rejected legislation regarding crypto investments. Meanwhile, North Carolina recently proposed a measure to permit the state to invest in Bitcoin exchange-traded products.
SB 21’s progression and potential adoption could further position Texas at the forefront of cryptocurrency innovation and investment. By removing the $500 million cap and widening investment capabilities, the Lone Star State looks poised to become the first US state to hold a robust Bitcoin reserve—potentially making a significant statement about the role of digital assets in long-term public finance strategy.
At press time, BTC traded at $96,145.
Featured image created with DALL.E, chart from TradingView.com
