Texas Explores Bitcoin Reserve as Legislative Priority, Joining Federal Push

• Bitcoin mining leader Texas pushes reserve; Florida, Wyoming, others consider similar crypto treasury plans.
• Senator Lummis advocates federal Bitcoin reserve; Polymarket gives 55% odds of 2024 approval amid hearings.

Texas Lieutenant Governor Dan Patrick has designated the creation of a state Bitcoin reserve as a top legislative goal for 2024. The proposal , labeled Senate Bill 21—a nod to Bitcoin’s 21 million supply cap—would permit Texas to accumulate Bitcoin through tax payments and voluntary donations. 

Axios reported the initiative could position Texas, with its $2.4 trillion economy, among the first U.S. states to hold the cryptocurrency as a treasury asset. The bill currently excludes provisions for direct Bitcoin purchases by the state.

🚨 Texas Lieutenant Governor Dan Patrick names the Texas Bitcoin Reserve a top legislative priority of 2025! pic.twitter.com/YSmnMwUgpm

— Julian Fahrer (@Julian__Fahrer) January 29, 2025

The Texas House of Representatives first proposed the reserve in December 2023, framing it as a hedge against inflation and a tool for fiscal stability. Texas hosts one of the largest concentrations of Bitcoin mining operations globally, leveraging its energy infrastructure and deregulated power markets. 

However, the bill’s initial draft focuses on accepting Bitcoin, not acquiring it, leaving strategies for accumulation undefined. At least four other states—Florida, Ohio, North Dakota, and Wyoming—are evaluating similar measures to incorporate Bitcoin into state reserves.

At the federal level, Wyoming Senator Cynthia Lummis plans to prioritize hearings on a national Bitcoin reserve after assuming leadership of a new Senate subcommittee on digital assets. Lummis introduced legislation in 2023 requiring the U.S. Treasury to buy 1 million Bitcoin over five years, as we already reported on ETHNews.

Her push aligns with Texas’s efforts, reflecting broader interest in cryptocurrencies as alternative reserves. Prediction platform Polymarket estimates a 55% likelihood of a federal Bitcoin reserve launching in 2024.

The Texas proposal arrives amid debates over Bitcoin’s role in public finance

Critics question its volatility and regulatory clarity, while supporters argue its fixed supply offers inflation resistance. If approved, Texas could accept Bitcoin for tax payments, though conversion to U.S. dollars would likely follow, given budget requirements. The state’s existing Bitcoin mining industry, which consumes surplus energy, provides a practical foundation for such policies.

State-level Bitcoin reserves face logistical challenges , including custody solutions and valuation rules. Texas has not disclosed how it would store or manage Bitcoin holdings. Federal oversight could force multiple states to adopt reserves , potentially standardizing frameworks. For now, the legislative focus remains on enabling acceptance, not investment.