Texas Lieutenant Governor Dan Patrick has announced that creating a Bitcoin reserve will be a key legislative priority for the state in 2025. This move aligns Texas with a growing number of U.S. states exploring cryptocurrency reserves as part of their financial strategy.
Texas Moves Toward a Bitcoin Reserve
On January 29, Patrick outlined Texas’ legislative priorities, highlighting a proposal to establish a Texas Bitcoin Reserve. The state joins others, including Arizona and Utah, where similar initiatives are progressing through legislative committees.
Two Texas lawmakers have already introduced legislation to create a state-held Bitcoin reserve. State Senator Charles Schwertner, in a January 16 post on X, emphasized that such a reserve would position Texas at the forefront of the digital economy, fostering growth and financial security.
Additionally, in December 2024, Republican state Representative Giovanni Capriglione proposed a bill in the Texas House of Representatives to create a strategic Bitcoin reserve. His legislation includes provisions allowing certain state fees, taxes, and contributions to be paid in Bitcoin, which would then fund the reserve.
Why Texas is Embracing Bitcoin
Supporters argue that Bitcoin reserves modernize financial systems, offering a hedge against inflation and signaling economic innovation. The concept has gained traction not only at the state level but also nationally.
Former U.S. President Donald Trump campaigned on the idea of establishing a national Bitcoin reserve, while Wyoming Senator Cynthia Lummis introduced the BITCOIN Act, which would create a federal reserve of the digital asset.
Texas, the largest state in the U.S. by land area, has an economy that would rank eighth in the world if it were a sovereign nation. The state collects over $250 billion annually from taxes, fees, and assessments, according to the Texas comptroller.
Texas is also a major hub for Bitcoin mining, attracting miners with its low-cost energy, access to renewable power, and crypto-friendly regulations. This concentration of Bitcoin activity makes the state a natural candidate for pioneering government-backed cryptocurrency reserves.
