Texas Moves to Establish State-Backed Bitcoin Reserve in 2025 Legislative Push

Texas is setting its sights on Bitcoin as part of its 2025 legislative agenda, with Lieutenant Governor Dan Patrick unveiling plans that include the creation of a state-backed Bitcoin reserve.

This move places Texas among a growing number of states considering similar initiatives, with Arizona and Utah already making progress on related legislative proposals.

Efforts to establish a Bitcoin reserve in Texas have gained traction from multiple officials. The most recent push came on January 16 from state Senator Charles Schwertner, who highlighted the potential economic benefits on X, emphasizing that such a reserve could bolster the state’s position in the digital economy and strengthen financial independence. Before that, in December 2024, Republican Representative Giovanni Capriglione introduced a bill in the Texas House of Representatives to create a strategic Bitcoin reserve, proposing that state fees, taxes, and contributions be payable in BTC to help fund it.

Advocates argue that incorporating Bitcoin reserves into state finances represents a shift toward modernized monetary systems, providing a hedge against inflation and signaling a forward-thinking approach to economic strategy. On a broader scale, reports suggest that countries like Chile and the U.S. are also exploring the possibility of holding cryptocurrency reserves.

Bitcoin’s role in national policy discussions has been growing. Former President Donald Trump campaigned on the idea of establishing a federal Bitcoin reserve, and Wyoming Senator Cynthia Lummis introduced the BITCOIN Act, a bill aimed at formalizing such a reserve at the national level.

As the second-largest state economy in the U.S.—and one that would rank as the world’s eighth-largest if it were an independent country—Texas generates over $250 billion annually in revenue through taxes and fees. The state has already become a major hub for Bitcoin mining due to its affordable energy, renewable power sources, and regulatory environment that is widely seen as favorable to the crypto industry.