The Texas Senate is set to hold a public hearing on February 18 to discuss the establishment of a strategic Bitcoin (BTC) reserve. The proposed Senate Bill 21 (SB21), introduced by Senator Charles Schwertner, seeks to integrate Bitcoin into Texas’ financial strategy and establish the state as a leader in digital asset adoption.
While the bill represents an important step toward integrating Bitcoin at the state level, some analysts believe it may be more symbolic than substantive. That said, the legislation could still play a key role in normalizing BTC as a reserve asset, similar to traditional commodities like gold.
🚨NEW: West Virginia Bitcoin Reserve bill
SB 465 would allow the state to invest 10% of public funds, plus public retirement funds, into Bitcoin.
WV is the 23rd state to introduce ‘Bitcoin Reserve’ legislation. pic.twitter.com/vlr4lpXPbr
— Julian Fahrer (@Julian__Fahrer) February 14, 2025
A new version of the bill, introduced last week, expands the scope of investment beyond Bitcoin to cryptocurrencies with a market capitalization of at least $500 billion for a year—a threshold only BTC currently meets. Additionally, the bill removes the previous $500 million annual purchasing cap, allowing for more flexibility in acquiring assets.
Texas’ Crypto-Friendly Stance
Texas has long positioned itself as a crypto hub, with a significant portion of Bitcoin mining activity taking place in the state. In fact, Texas-based BTC miners account for 52% of the network’s total hashrate, making the Lone Star State a crucial player in the industry. The initiative follows similar proposals from over 20 other U.S. states, including West Virginia, which recently became the 23rd state to introduce a Bitcoin reserve bill.
Market Reactions and Federal Implications
While Texas lawmakers explore a potential Bitcoin reserve, the federal government remains divided on the issue. President Donald Trump recently signed an executive order to develop a national digital asset framework, hinting at possible federal-level BTC holdings.
However, the odds of a federal BTC reserve approval this year stand at just 43%, according to Polymarket data.
The upcoming hearing will provide insights into Texas’ commitment to Bitcoin as a financial asset. If the state moves forward with an actual investment strategy, it could set a precedent for other states to follow. On the other hand, without a clear purchasing plan, the hearing may be little more than a symbolic gesture in BTC’s journey toward mainstream adoption.
