On May 27, 2025, a joint conference committee of the Texas House and Senate reached an agreement on the final version of Senate Bill 21 (SB 21), the Texas Strategic Bitcoin Reserve Act. Here are the details:
Digital Asset Eligibility Criteria
The Senate initially proposed that a digital asset must maintain a $500 – billion market cap for 12 consecutive months to be eligible for inclusion in the state’s reserve. The House, however, took a more conservative approach and advocated for a 24 – month requirement. The final bill adopts the House’s stance, extending the qualification period to 24 consecutive months at or above the $500 – billion threshold. With this criterion, only Bitcoin currently qualifies.
Removal of Staking Clause
The House had previously included a provision allowing the Texas comptroller to participate in staking digital assets to generate yield. However, this clause was removed from the final draft. As a result, Texas will hold digital assets passively and will not generate returns through staking.
Asset Management Provisions
Under SB 21, the Texas comptroller is authorized to work with external providers for asset management. This includes a qualified custodian with secure storage systems, a liquidity provider to facilitate purchases, and an independent certified public accountant to audit the reserve. The bill also permits the use of derivatives if deemed beneficial to the fund.
Establishment of Advisory Committee
The legislation establishes a five – member Texas Strategic Bitcoin Reserve Advisory Committee. This committee will provide advice on asset valuation methods and recommend prudent investment policies.
Financial Reporting Requirements
The comptroller is required to publish a detailed financial report every two years, with updates due by December 31 of each even – numbered year.
The bill now awaits a final vote in both chambers before heading to Governor Greg Abbott’s desk. If signed into law, Texas will become the second U.S. state, after New Hampshire, to maintain reserves in Bitcoin.
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