Original | Odaily Planet Daily ( @OdailyChina )
Author | Ethan ( @Jingchun333 )
The encryption storm continues to rage over America.
On March 7, President Trump signed the executive order Establishing a Strategic Bitcoin Reserve and the United States Digital Asset Reserve; on March 8, the White House Crypto Summit was held, with government officials and crypto industry leaders gathering together; on March 9, Texas new move once again ignited the passion of the entire crypto market - the state Senate formally passed Senate Bill 21 (SB 21), creating the first state-level cryptocurrency fund in U.S. history - Texas Bitcoin Reserve!
This Wild West land is now going to become the Digital Gold State, and will spend $500 million every year to buy Bitcoin (BTC) and other top cryptocurrencies. This is not just a small move in the state, but also a weathervane for crypto policies across the United States and even the world. Is Texas really going to gallop and lead the United States to Bitcoin dominance? Odialy Planet Daily takes readers to find out.
How does Texas navigate the legal and technical maze of Bitcoin reserves?
Building a Bitcoin reserve is more than just buying a Bitcoin hardware wallet. Texas needs to go through a series of legal, regulatory and technical steps to make this digital treasury firmly established.
According to the latest news, SB 21 was passed by the Texas Senate with a vote of 25 to 5 on March 6, 2025. This is good news, but dont worry, this is just the beginning. The bill needs several steps to be successfully launched and implemented:
Step 1: First, a legislative proposal needs to be drafted by a state legislator or relevant committee and submitted to the state legislature. The bill includes details such as the specific goals of Bitcoin reserves, sources of funds, purchase and management methods. After the bill is proposed, it will usually be assigned to the state legislatures finance or economic development committee for detailed review, and a hearing may be held to listen to opinions from all parties.
Step 2: Next, the bill needs to be voted on by both houses of the state legislature (if the state has a bicameral system). First, the state House of Representatives will discuss and vote. If it passes by a majority, it will be submitted to the Senate for further deliberation and voting. Some states have the opposite process. Only after both houses pass the bill can it enter the final approval stage. Readers should note that all the House of Representatives and Senate in this article refer to the House of Representatives and Senate of the state. Normally, state legislation does not require approval from the federal Senate and House of Representatives. (Note: Texas has now reached this step!)
Step 3: After both houses of the state legislature pass the bill, it will be sent to the governor for signature . If the governor agrees and signs it, the bill officially becomes law and the state government can start implementing the Bitcoin strategic reserve. If the governor vetoes it, the legislature can make amendments or try to override the veto with a higher vote (usually a two-thirds majority).
Step 4: Once the bill comes into effect, the state government will designate relevant agencies to implement the reserve plan , usually the state finance department or a specially established fund management department. They need to formulate specific purchase strategies, choose appropriate custody methods (such as third-party custody or self-custody), and ensure the security of reserve funds. At the same time, the state government needs to establish a transparent supervision and audit mechanism and regularly report the status of Bitcoin reserves to the public or the legislature.
If anything goes wrong in any of these steps, the Bitcoin Reserve Act will not pass in the state.
Therefore, the bill will have to go through a heated debate in the House of Representatives (there may be opposition voices questioning the volatility of Bitcoin), and finally need the governors signature to take effect. However, according to the latest public information, the bill has been reported as Engrossed, which means it has been sent to the House of Representatives for deliberation; there is currently no clear public information on the specific time point when it will be sent to the House of Representatives for a vote.
The House vote may take place in the next 2-4 months (roughly May to July 2025), but it has not yet been officially confirmed and the actual time depends on the arrangements and priorities of the House committees. If a more specific official time node is announced, it will usually be updated on the Texas Legislative Website ( capitol.texas.gov ) or in related news.
In addition, the Texas government plans to let the state financial accountant manage the fund on a technical level, and protect Bitcoin from threats through cold storage (like locking gold bars in a vault, storing them offline to prevent hacker attacks); in terms of investment strategy, it plans to buy up to $500 million in Bitcoin each year. The whole process is like building a digital version of Fort Knox, which is complex but full of potential. In addition , Texas plans to reduce the risk of drastic fluctuations in Bitcoin prices or endangering public funds through advisory committees and strict audits (submitting reports to the state legislature every two years) .
Why did Texas take the lead?
First of all, Texas has strong advantages in terms of economic size and policy environment. Texas is the second largest economy in the United States, with the second largest GDP in the United States and among the top ten in the world. With a strong economic foundation, Texas has a more open attitude towards new things and is willing to try new things, especially in high-risk and high-return fields such as cryptocurrencies. In addition, Texass long-standing policy of low regulation and high freedom has also attracted a lot of innovative companies, especially in the blockchain and cryptocurrency industries. Previously, the HB 4474 Act passed by Texas in 2021 has incorporated virtual currency into the commercial law framework, laying a policy foundation for the subsequent crypto industry.
Furthermore, Texas energy resources and industrial structure also provide driving force for crypto mining. Crypto mining consumes a lot of electricity. Texas has abundant wind, solar and natural gas resources, relatively cheap electricity prices, and high grid independence (the ERCOT system is basically a school of its own), which is very attractive to mining companies. Many Bitcoin mining companies, such as Riot Blockchain, have long been rooted in Texas. If the SB 21 Bill is passed, Texas can also use public funds to directly invest in cryptocurrencies, further increasing its energy advantages and attracting more players to join.
Riot Blockchains Bitcoin mining facility in Texas
Secondly, the political wind and the attitude of the leadership also played a role in fueling the trend. The current Texas Governor Greg Abbott has always been open to cryptocurrencies and even publicly expressed support for related legislation. The sponsor of the SB 21 Bill, Senator Charles Schwertner, also regards the bill as a priority, and there are industry organizations such as the Texas Blockchain Council lobbying behind it. Everyone has the same goal, which is to make Texas a test field for crypto reserves, to set rules and occupy the market before other states.
Finally, Texas culture and history also contributed to this. People here have always liked to be different and emphasize independence, so it is not uncommon for them to do something anti-mainstream. In addition, Texas has taken a similar path in gold reserves (Texas Treasury) before. In 2015, it built the first state-level treasury in the United States. Now promoting Bitcoin reserves is also in line with its consistent tone.
Texas crypto reserve has not yet been completely settled. If it wins, Texas is expected to further widen the gap with other states and become the leader in the cryptocurrency field. However, there are risks, especially the volatility of cryptocurrencies. It will take time to test whether Texass move is a bold innovation or a pitfall.
Crypto Map of the U.S.: States (Parts) Taking Wild Adventures in Digital Currency
Why are states suddenly interested in cryptocurrency reserves?
The enthusiasm of US states for cryptocurrencies is not out of thin air. In the past few years, the prices of crypto investment targets such as Bitcoin and Ethereum have skyrocketed, which is enviable. In 2021, El Salvador directly designated Bitcoin as legal tender. In 2024, Trump called on the Nashville Bitcoin Conference to make the United States the global cryptocurrency capital and proposed a Strategic Bitcoin Reserve. All these have given state governments a boost.
Coupled with the overall economic environment in the United States - high inflation, questioned hegemony of the US dollar, and the growing popularity of the concept of decentralized finance, states began to wonder: Can they use cryptocurrencies to innovate in ways that can both attract investment and show that they are avant-garde? Moreover, there is already fierce competition among state governments, and whoever tries first may seize the initiative, both economically and politically.
Crazy adventures in some states
Texas: Cowboys at the starting line
Texas has been a big player in the cryptocurrency space. As mentioned above, their Senate just passed SB 21, which intends to establish the Texas Strategic Bitcoin Reserve to allow public funds to invest directly in cryptocurrencies.
New Hampshire: Great Potential
New Hampshires core action on cryptocurrency reserves is House Bill 302 (H B3 02), also known as their Bitcoin Reserve Act. This bill was proposed by Republican Congressman Keith Ammon on January 10, 2025, and has been supported by some Democratic congressmen. It is a small cross-party attempt.
Utah: Low-key but not backward
Utah is also developing a Bitcoin reserve, and is considered a member of the active support camp. They have a characteristic, and the bill sets a threshold: only cryptocurrencies with a market value of more than $500 billion can be invested, and currently Bitcoin meets the requirements. Utahs logic is more cautious, and it may also be that they want to use cryptocurrencies to stimulate technology investment (they have a bit of a Silicon Valley branch flavor).
Arizona: Close behind
Arizona is also pushing a Bitcoin reserve bill, second only to Utah. They are moving fast, probably because they want to grab the first prize in the southwest. Arizonas crypto community is already active, and the state government also wants to take the opportunity to attract more blockchain companies to settle down. However, the details of their bill have not yet been fully disclosed.
Opposition: Five states said No directly
Not all states are buying into this. It is said that five states (Montreal, South Dakota, North Dakota, Pennsylvania, and Wyoming) are clearly opposed to Bitcoin reserves, mainly focusing on volatility and fiscal compatibility. After all, state governments don’t get their money from the wind, and it’s not unheard of for cryptocurrencies to plummet 30% overnight. Most of the states that oppose this are “red states” (Republican strongholds), which is quite unexpected. I thought Trump’s support would make all the red states jump in, but the result still depends on the specific fiscal situation and voter attitudes.
The current status of the legislation process of the Startegic Bitcoin Reserve Act (yellow represents support, black represents opposition) by US state governments
Conclusion: Who will be the next Bitcoin reserve champion?
Texas Bitcoin reserve fund plan has ignited the enthusiasm for cryptocurrencies across the United States. Who will be the next? I make a bold prediction: New Hampshire has the most potential! This free state is known for its crypto-friendly policies. State legislators have proposed similar reserve proposals, and the local community is enthusiastic about Bitcoin. Another possible candidate is Utah , whose blockchain innovation and economic strength also make it a potential candidate.
Of course, the complexity of the cryptocurrency market cannot be ignored. Whether it is the sharp fluctuations in prices or the uncertainty at the regulatory level, it may become a stumbling block on the road to crypto reserves. If other regions want to follow suit, they need to not only learn from Texas policy framework, but also formulate more robust strategies based on their own economic structure.
Looking to the future, the potential of cryptocurrency goes far beyond reserves. For regions that are interested in deepening their digital economy, supporting innovation in areas such as encrypted digital retail and start-up incubation may be the key step to truly unlock the potential of the Bitcoin market. Who will be the next leader in the Bitcoin market? Let us wait and see!
