Original | Odaily (@OdailyChina)
Author | Ethan (@Jingchun333)
The crypto storm continues to rage over the United States.
On March 7, President Trump signed an executive order "Establishing a Strategic Bitcoin Reserve and a U.S. 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, a new move in Texas once again ignited the passion of the entire crypto market - the Texas State Senate officially passed Senate Bill 21 (SB 21), creating the first state-level cryptocurrency fund in U.S. history - the Texas Bitcoin Reserve!
This "Wild West" land is now set to become the "Digital Gold State", with plans to spend $500 million a year to buy BTC and other top cryptocurrencies. This is not just a "small move" for the state, but a barometer of crypto policy direction across the U.S. and even globally. Is Texas really going to gallop forward and lead the U.S. to the position of Bitcoin hegemon? Odaily takes readers on an in-depth exploration.
How will Texas navigate the legal and technical maze of the Bitcoin reserve?
Establishing a Bitcoin reserve is not as simple as just buying a Bitcoin hardware wallet. Texas needs to go through a series of legal, regulatory and technical steps to firmly establish this "digital vault".
According to the latest news, SB 21 has been passed by the Texas State Senate on March 6, 2025 by a vote of 25 to 5. This is good news, but don't be hasty, this is just the beginning, and the bill needs to go through these steps to get a smooth start:
Step 1: First, the legislative proposal needs to be drafted by state legislators or relevant committees and submitted to the state legislature. The bill content includes the specific goals of the Bitcoin reserve, funding sources, purchase and management methods, etc. After the bill is proposed, it is usually assigned to the finance or economic development committee of the state legislature for detailed review, and a hearing may be held to solicit 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, and if it passes by a majority, it will be submitted to the Senate for further review and voting, or the process may be reversed in some states. After passing both houses, the bill can enter the final approval stage. Readers should note that all references to the House and Senate in this article refer to the House and Senate of that state. Normally, state-level legislation does not require approval from the federal House and Senate. (Note: Texas has reached this step!)
Step 3: After the bill has passed both houses of the state legislature, it will be sent to the governor for signing. 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 revise or try to override the veto with a higher vote (usually a two-thirds majority).
Step 4: Once the bill takes effect, the state government will appoint relevant agencies to execute the reserve plan, usually the state treasury or a specially established fund management department. They need to develop specific purchase strategies, choose appropriate custody methods (such as third-party custody or self-custody), and ensure the security of the reserve funds. At the same time, the state government needs to establish transparent regulatory and audit mechanisms, and regularly report the status of the Bitcoin reserve to the public or the legislature.
If any of the above steps go awry, the Bitcoin reserve bill will not pass in that state.
So next, the bill still needs to go through fierce debate in the House (there may be opposition voices questioning the volatility of Bitcoin), and finally needs the governor's signature to take effect. However, according to the latest public information, the bill has been reported as "Engrossed", meaning it has been sent to the House for consideration; there is currently no public information on the specific timing of the House vote.
The House vote may take place in the next 2-4 months (roughly May to July 2025), but this has not been officially confirmed, and the actual timing depends on the arrangements and priorities of the House committees. If there are more specific official timelines released, they will usually be updated on the Texas legislative website (capitol.texas.gov) or in relevant news.
Additionally, on the technical side, the Texas government plans to have the state comptroller manage this fund, using cold storage (like locking gold bars in a vault, offline storage to prevent hacker attacks) to protect Bitcoin from threats; the investment strategy plans to purchase up to $500 million in Bitcoin per year. The whole process is like building a digital version of Fort Knox, complex but full of potential. And, Texas plans to reduce the risks of Bitcoin price volatility or endangering public funds through an advisory committee and strict audits (reporting to the state legislature every two years).
Why did Texas take the lead?
First, Texas's economic scale and policy environment have significant advantages. Texas is the second largest economy in the U.S., ranking second in the country and top ten globally. Its strong economic foundation allows Texas to take a relatively open-minded and willing-to-experiment attitude towards new things, especially high-risk, high-return areas like cryptocurrencies. In addition, Texas' long-standing "low regulation, high freedom" policy has also attracted a swarm of innovative companies, especially in the blockchain and cryptocurrency industry. Previously, Texas passed the "HB 4474 Act" in 2021, which has already incorporated virtual currency into the commercial law framework, laying a policy foundation for the subsequent crypto industry.
Furthermore, Texas's energy resources and industrial structure also provide power support for crypto mining. Crypto mining consumes an astonishing amount of electricity, and Texas has abundant wind, solar and natural gas resources, relatively cheap electricity prices, and a highly independent grid (the ERCOT system is largely self-contained), which is hugely attractive to mining companies. Many Bitcoin mining companies, such as Riot Blockchain, have already put down roots in Texas. If the "SB 21 Act" is truly passed, Texas can also directly invest public funds in cryptocurrencies, further capitalizing on its energy advantages to attract more players.
Riot Blockchain's Bitcoin mining facility in Texas
Secondly, the political direction and attitude of the leadership have also played a catalyzing role. The current Texas Governor Greg Abbott has always maintained an open attitude towards cryptocurrencies, even publicly expressing support for related legislation. The sponsor of the "SB 21 Act", Senator Charles Schwertner, has also made this bill a priority, with the backing of the Texas Blockchain Council, an industry organization, lobbying behind the scenes. Everyone's goal is the same - to make Texas the "testing ground" for crypto reserves, to set the rules and occupy the market before other states.
Finally, Texas's culture and history also deserve some credit. The people here have always liked to be unconventional and emphasize independence, and doing something "counter-mainstream" is nothing new. Add to that the fact that Texas has already gone through a similar path with the gold reserve (the Texas Bullion Depository) in 2015, the first state-level vault in the U.S., and now pushing for a Bitcoin reserve is also in line with its consistent style.
Here is the English translation:The crypto reserve in Texas has not yet been fully settled. If they really win, Texas is likely to further widen the gap with other states and become the "leader" in the cryptocurrency field. However, there are also risks involved, especially since cryptocurrencies are highly volatile, and whether Texas' move is a bold innovation or a pitfall remains to be seen.
Crypto Map of the US: The Crazy Adventures of (Some) States in the Digital Currency Field
Why are the states suddenly interested in crypto currency reserves?
The enthusiasm of the US states for cryptocurrencies is not coming out of nowhere. Over the past few years, the prices of cryptocurrencies like Bitcoin and Ethereum have skyrocketed like a rocket, making people envious. In 2021, El Salvador directly made Bitcoin its legal tender, and in 2024, Trump called for making the US the "global capital of cryptocurrencies" at the Bitcoin conference in Nashville, and proposed a "Strategic Bitcoin Reserve". All of this has given state governments a boost.
Coupled with the overall economic environment in the US - high inflation, the US dollar's hegemony being questioned, and the concept of decentralized finance becoming increasingly popular, the states have started to ponder: Can they use cryptocurrencies to do some innovation, both to attract investment and to show that they are "avant-garde"? Moreover, there is already fierce competition between state governments, and whoever eats the crab first will likely seize the initiative, whether economically or politically.
The "Crazy Adventures" of Some States
Texas: The "Cowboy" at the Starting Line
Texas has always been big in the cryptocurrency field. As mentioned above, their state senate has just passed the SB 21 bill, planning to build a "Texas Strategic Bitcoin Reserve" and allow public funds to directly invest in cryptocurrencies.
New Hampshire: Highly Potential
The core action of New Hampshire on cryptocurrency reserves is House Bill 302 (HB302), their "Bitcoin Reserve Act". This bill was proposed by Republican Representative Keith Ammon on January 10, 2025, and received the support of some Democratic legislators, which is a small cross-party attempt.
Utah: Low-key but Not Behind
Utah is also doing Bitcoin reserves, and is part of the "actively supportive" camp. They have a feature in their bill: they can only invest in cryptocurrencies with a market capitalization of over $500 billion, which currently only Bitcoin meets. Utah's logic is more cautious, and they may also want to use cryptocurrencies to drive tech investment (they already have a "Silicon Valley branch" flavor).
Arizona: Following Closely
Arizona is also pushing a Bitcoin reserve bill, second only to Utah in progress. They are moving fast, possibly wanting to grab the first mover advantage in the Southwest. Arizona's crypto community is already active, and the state government also wants to use this to attract more blockchain companies to settle there. However, the details of their bill have not been fully disclosed yet.
The Opposition: Five States Directly Say "No"
Not all states are buying in. Reportedly, five states (Montana, South Dakota, North Dakota, Pennsylvania, and Wyoming) have explicitly opposed setting up Bitcoin reserves, mainly on the grounds of volatility and fiscal compatibility. After all, state government money is not blown in by the wind, and it's not uncommon for cryptocurrencies to plummet 30% overnight. The opposing states are mostly "red states" (Republican strongholds), which is quite unexpected, as one would have thought Trump's support would make the red states all jump in, but it turns out they still have to look at their specific fiscal conditions and voter attitudes.
Current status of the legislative process of the Strategic Bitcoin Reserve Act by US state governments (yellow represents support, black represents opposition)
Conclusion: Who Will Be the Next Bitcoin Reserve Champion?
The Bitcoin reserve fund plan in Texas has ignited the crypto enthusiasm across the US, so who will be next? The author boldly makes a prediction: New Hampshire has the most potential! This "Free State" is known for its crypto-friendly policies, and state legislators have already proposed similar reserve proposals, and the local community is also highly enthusiastic about Bitcoin. Another possible candidate is Utah, whose blockchain innovation and economic strength also make it a potential contender.
Of course, the complexity of the cryptocurrency market cannot be ignored. Whether it is the violent fluctuations in prices or the uncertainties in regulation, they may all become stumbling blocks on the path of crypto reserves. If other regions want to emulate, they not only need to learn from Texas' policy framework, but also need to develop more robust strategies based on their own economic structures.
Looking to the future, the potential of cryptocurrencies goes far beyond just reserves. For regions aspiring to deeply cultivate the digital economy, supporting innovations in areas such as crypto digital retail and startup incubation may be the key to unlocking the true potential of the Bitcoin market. Who will be the next leader in the Bitcoin market? Let's wait and see!
