Key Points
- Texas is planning to create a state-level Bitcoin reserve, marking it as a top legislative priority for 2025.
- Several states including Pennsylvania, Ohio, Florida, and Wyoming are also considering establishing their own Bitcoin reserves.
Texas is embarking on a bold financial journey by planning to establish a state-level Bitcoin reserve. This initiative was announced by Lieutenant Governor Dan Patrick as one of his top 40 legislative priorities for the 89th regular session in 2025. The primary focus of this initiative is Senate Bill 21, showing Texas’s firm commitment to Bitcoin as a part of its long-term financial strategy.
The proposed reserve will be separate from the state’s general revenue fund. This arrangement would allow Texas to directly hold Bitcoin as an asset. The bill also includes plans for the state to allocate funds for further Bitcoin purchases and to allow residents to donate Bitcoin to the reserve.
Other States Joining the Race
Texas is not the only state considering this move. In recent months, Pennsylvania, Ohio, Florida, and Wyoming have introduced or passed bills to establish their own Bitcoin reserves. Texas’ initiative, however, has strong legislative support, potentially making it the most significant state-level Bitcoin fund in the U.S.
The push for a Bitcoin reserve by Lt. Gov. Patrick aligns with the growing sentiment that states should have direct exposure to digital assets. Supporters argue that Bitcoin serves as a hedge against inflation and government overreach, making it an attractive asset for long-term state financial security.
Patrick, a staunch conservative, has centered his legislative priorities around strengthening Texas’ financial independence. He stated that these bills “represent the will of the conservative majority of Texans” and are expected to pass with bipartisan support. The potential for Bitcoin to appreciate over time is a major factor behind this push. As the world’s largest cryptocurrency, Bitcoin has outperformed traditional assets like gold and stocks over the past decade. Texas, known for its independent financial policies, sees this as an opportunity to solidify its position as a national leader in digital asset adoption.
The National Bitcoin Reserve Race
Pennsylvania made the first move in November 2024 with the proposal of the Bitcoin Strategic Reserve Act. This act allows up to 10% of the state’s $7 billion Rainy Day Fund and $9.7 billion General Fund to be invested in Bitcoin. If passed, this could be one of the largest state-backed investments in digital assets.
Ohio followed suit with State Representative Derek Merrin introducing the Ohio Bitcoin Reserve Act in December. This bill grants authority to the State Treasurer to purchase Bitcoin at any time, positioning Ohio as another major player in the Bitcoin reserve movement.
Florida, known for its innovative economic policies, could soon join the race. Samuel Armes, president of the Florida Blockchain Business Association (FBBA), revealed in December that both Speaker of the House Danny Perez and Senate President Ben Albritton support the initiative. With Governor Ron DeSantis known for his pro-crypto stance, Florida seems poised to make a move in early 2025.
While Texas is moving full steam ahead, other states have adopted more cautious approaches. For instance, Wyoming introduced a bill allowing only 3% of its public fund to be allocated to Bitcoin, in contrast to Pennsylvania and Utah, which have proposed 10% allocations.
