Texas Moves a Step Closer to Holding Bitcoin (BTC) as a Reserve Asset

Texas has moved a step closer to holding Bitcoin (BTC) as a reserve asset, with the state senate passing a bill on March 6

Texas has moved a step closer to holding Bitcoin (BTC) as a reserve asset, with the state senate passing a bill on March 6 that would allow public funds to be allocated to digital assets.

The decision places Texas at the forefront of a growing trend among states exploring crypto investments following President Donald Trump’s call for a federal strategic crypto reserve.

State-level momentum

The Texas bill, SB 21, would permit the state to invest in Bitcoin, a move its sponsor, Senator Charles Schwertner, described as a hedge against inflation and financial instability. Schwertner argued that Bitcoin has repeatedly proven its resilience through economic cycles, making it a viable reserve asset.

“We need to be able to have assets that will hold their value over time, and Bitcoin has done an excellent job of maintaining its purchasing power, even as the dollar has depreciated steadily,” said Schwertner.

The bill now advances to the assembly, where it faces a vote before potentially reaching Governor Greg Abbott's desk for signature.

New Hampshire also advanced its own legislation this week. On March 5, a state house committee approved House Bill 302 by a 16-1 vote, paving the way for the state to invest up to 5% of public funds in bitcoin and precious metals. The bill now awaits a full vote in the state legislature.

The bill's sponsor, Representative Ken Moniz, highlighted the state's strong fiscal position and the potential for generating returns through bitcoin investments.

“We have a $1 billion surplus in the state treasury, and we're looking for ways to invest it wisely,” said Moniz. “We can't keep putting it all in the stock market, and we need to diversify our investment portfolio.”

The legislation faced opposition from state Treasurer توم مان, who expressed concerns over administrative burdens and the potential for political interference in investment decisions.

"We're already managing billions of dollars in a highly efficient and effective manner," said Man. "Adding bitcoin and precious metals would create a significant administrative headache and open the door to undue political influence over our investment strategy."

Despite this opposition, the committee ultimately voted in favor of the bill, sending it to the full house for consideration.

Meanwhile, Utah is running out of time to finalize a similar proposal. The state's legislative session ends on March 7, and its bill — already passed by the state house — still awaits a vote in the Senate.

If approved, it would allow Utah to allocate public funds to digital assets valued at over $500 billion in market capitalization, a criterion that currently applies only to Bitcoin. Governor Spencer Cox, a Republican who has previously supported blockchain initiatives, would then decide whether to sign it into law.

The bill's sponsor, Representative Steve McMullin, emphasized the state's need for new revenue streams to fund critical programs.

"We're facing a budget crisis, and we need to think outside the box,” said McMullin. "Bitcoin presents a unique opportunity to generate significant returns on investment and diversify our revenue portfolio."

The bill's passage would make Utah a leader in cryptocurrency regulation and innovation, potentially attracting industry talent and investment to the state.

Federal crypto reserve

The surge in state-level crypto legislation follows Trump’s renewed push for a national crypto reserve, which he announced on social media on March 2. The US President outlined a plan that could include digital assets beyond Bitcoin.

"We need to create a national strategic crypto reserve to serve as a hedge against inflation, financial instability, and geopolitical risk," Trump wrote on Thursday.

The proposal has sparked debate among industry figures, with some supporting the initiative and others raising concerns.

CoinDesk reported that Garland expressed skepticism about the plan, highlighting the legal and administrative complexities involved in managing such a reserve.

Industry leaders have largely pushed back against including multiple cryptocurrencies, arguing that Bitcoin alone has the characteristics necessary for a reserve asset comparable to gold.

"The president is thinking about a basket of digital assets, but that would be a logistical nightmare," said Mike Novogratz, CEO of crypto-focused investment firm Galaxy Holdings. "We should focus on Bitcoin, the original and best cryptocurrency, as the core of the reserve."

Uncertainty remains over how the government would source or manage such a portfolio, and no formal policy framework has been proposed.

With some states moving aggressively toward bitcoin adoption and others facing legislative roadblocks, the debate over cryptocurrency's role in public finance is expected to intensify in the coming months.