As Texas heads towards the final vote, the world’s eighth largest economy close to adopting Bitcoin reserves

Texas is moving forward with plans to create a government-backed Bitcoin Reserve after lawmakers approved Senate Bill 21 (SB 21) in the second House of Representatives on May 20th.

According to voting records on the Texas Senate website, the proposal was passed with 105-23 votes, reflecting unusual bipartisan support. Now we head to our third reading and send the bill to the governor for approval on the final vote.

SB 21 aims to establish a strategic Bitcoin Reserve (SBR), making Texas one of the few states in the US that explores direct exposure to Bitcoin at the government level.

The meaning of such a movement is quite significant. Texas is the eighth largest economy in the world, with $2.6 trillion, surpassing Russia, Canada and Australia. State-level Bitcoin Reserves in such a robust economy will mark a major milestone in US crypto adoption.

Dennis Porter, co-founder and CEO of Satoshi Action Fund, highlighted the importance of progress in the bill.

He followed in the footsteps of New Hampshire and Arizona, saying Texas could quickly send the Bitcoin Reserve bill to the governor’s desk.

A third reading is expected soon, but Porter suggested that the bill rarely fails at this stage. But he admitted:

“Every state is different.”

Changes to Texas Bitcoin Reserve Bill

Prior to the vote, lawmakers introduced key amendments that allowed other digital assets to be included in the reserve, but only if they meet strict requirements.

To qualify, your digital assets must maintain a market capitalization of $500 billion for at least two years. This is twice the original 12-month requirement, causing a barrier to inclusion.

The Bitcoin Act, a company focused on Bitcoin policy, explained:

“This means that assets must maintain their lowest market capitalization for longer. It makes them difficult to qualify.”

This update effectively narrows the field as Bitcoin stands alone when meeting the threshold. It holds a market value of over $2 trillion, making it the only eligible digital asset under current standards.