Texas wants to make Bitcoin reserves a law by 2025
Texas is on track to become the first state in the United States to officially create a bitcoin reserve. This initiative has been prioritized by Lieutenant Governor Dan Patrick for the legislative session of 2025. With this announcement, Texas is marking a significant step in the increasing acceptance and integration of cryptocurrency at an institutional level within the country.
On January 29, Patrick made the official announcement regarding the bitcoin reserve project. This initiative follows the introduction of two key bills related to the project. The first, introduced by Senator Charles Schwertner in mid-January, outlines the framework for the reserve. The second bill, filed in December 2024 by Republican Representative Giovanni Capriglione, supports and complements the effort to incorporate bitcoin into the state's financial operations.
If this project moves forward, Texas will have the ability to accept bitcoin as payment for taxes and royalties. This would directly contribute to the creation of a strategic bitcoin reserve for the state. Texas, which generates over $250 billion annually in tax revenue, possesses the resources necessary to build a substantial bitcoin reserve. This decision aligns well with Texas's economic stature; if Texas were an independent country, it would rank as the eighth-largest economy worldwide.
The push for a bitcoin reserve occurs in a favorable environment. Texas is already well-established as a leading hub for Bitcoin mining. The state benefits from abundant energy sources and regulations that are friendly to cryptocurrency activities. This makes Texas a prime candidate for advancing bitcoin adoption further.
The initiative in Texas is just one part of a growing national movement. Several other states, including Arizona and Utah, are exploring similar projects to establish their own bitcoin reserves. Arizona has already taken a lead in this area with its Strategic Bitcoin Reserve Act, which aims to allocate up to 10% of its state funds to bitcoin.
This growing interest is supported by an increase in political backing for cryptocurrencies. A key figure in this movement is Senator Cynthia Lummis, who has been appointed to lead the Senate Subcommittee on Digital Assets. Her legislation, known as the BITCOIN Act, seeks to create a strategic national reserve for bitcoin, highlighting the wider acceptance and push for cryptocurrency at the federal level.
Given Texas's economic power and its existing expertise in the Bitcoin ecosystem, the state has the potential to drive significant institutional adoption of cryptocurrency across the United States. This could lead to a permanent shift in the financial dynamics of the country, while countries like France pursue different paths regarding cryptocurrency.