Published: July 21, 2025
Category: Tech Policy | Finance | U.S. States

When you think of Texas, what comes to mind? Longhorns? Oil fields? Now, you can add Bitcoin to that list.

In a bold new move, Texas has officially created a state-level Bitcoin reserve, becoming the third U.S. state to do so—joining New Hampshire and Arizona. The announcement followed the signing of Senate Bill 21 by Governor Greg Abbott on June 20, 2025.

What’s in the Bill?

Senate Bill 21 establishes the Texas Strategic Bitcoin Reserve, a government-managed agency responsible for investing up to $500 million from the state’s “rainy day fund” directly into Bitcoin. The reserve will be overseen by the State Comptroller and a Crypto Advisory Board appointed by the governor. These advisors will determine when to buy and sell Bitcoin, aiming to maximize returns while managing risk.

Bipartisan Support in a Polarized Time

Though the crypto world is often controversial, the bill received widespread bipartisan support—16 Republicans and 9 of 11 Democrats in the Texas Senate voted yes. According to Senator Brent Hagenbuch, who represents District 30 and co-sponsored the bill, the decision wasn’t political—it was practical.

“They looked at it for its value… is this a good asset for the state to invest in, for the people?” — Sen. Hagenbuch

He emphasized that the goal isn’t to bail out the crypto industry, but to hedge the state’s portfolio against inflation and future economic uncertainty.

The Critics Speak

Still, not everyone is convinced. Critics argue that cryptocurrency lacks federal regulation and remains too volatile for public funds. Senator Hagenbuch disagrees, saying the timing is right and the approach is conservative:

“We didn’t want to be a leader jumping into Bitcoin… We thought this was good timing.”

Why This Matters

Texas isn’t just any state—it’s the 8th largest economy in the world, with enormous influence on national economic trends. This move could signal a turning point for how governments approach digital assets.

It also adds to the ongoing debate around crypto’s role in public finance, with more states now eyeing digital reserves as a hedge in uncertain economic times.

What’s Next?

While the future of crypto in Texas remains open-ended, one thing is clear: the Lone Star State is making strategic bets on the future of money. Whether it’s smart, risky, or revolutionary—that’s something only time (and Bitcoin charts) will tell.

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Source:
KAUZ News, “Texas creating Bitcoin reserve, third state in country to do so”
By Devon Bajek
Published: July 19, 2025
Original Article on KAUZ