While critics point to the lack of federal regulation surrounding cryptocurrencies, Senator Hagenbuch defended the move, citing its strategic advantages.

The bill received bipartisan support, with 16 Republicans and 9 out of 11 Democrats voting in favor, reflecting broad political backing for this innovative financial approach.

On June 20, 2025, Texas Governor Greg Abbott signed Senate Bill 21, establishing the Texas Strategic Bitcoin Reserve, marking a significant move in state-level cryptocurrency adoption.

This reserve allows Texas to invest up to $500 million from its 'rainy day fund' into Bitcoin, aiming to hedge against inflation and boost the state's investment ranking.

Texas becomes the third state in the U.S. to establish a cryptocurrency reserve, following New Hampshire and Arizona, signaling a growing acceptance of digital assets at the state level.

Senator Brent Hagenbuch, a supporter of the bill, emphasized that the decision was driven by Bitcoin's value as an asset rather than political motives, highlighting its potential benefits.

The new agency managing the reserve will be overseen by the state Comptroller and a crypto advisory board appointed by Governor Abbott, composed of industry experts.