The Texas House has approved a groundbreaking bill to create a state-managed Bitcoin reserve, bringing the Lone Star State one step closer to officially embracing cryptocurrency as a strategic asset. The legislation, SB 21, passed in a 101-42 vote and now awaits Governor Greg Abbott’s signature.

If enacted, SB 21 will authorize the Texas comptroller to establish and manage a Bitcoin reserve. The bill permits investments in any cryptocurrency with a market cap exceeding $500 billion over the past year—Bitcoin currently being the only one that qualifies. The initiative was spearheaded by Senator Charles Schwertner and has already cleared the Texas Senate with a strong 25-5 vote.

Representative Giovanni Capriglione hailed the move as a defining moment for the state’s digital future, stating that Texas is embracing “a modern asset with traditional properties for future promise.” With a GDP of $2.7 trillion, Texas stands as the second-largest economy in the U.S. and would rank eighth globally if it were a nation.

Should Abbott approve the bill, Texas would become the second state after New Hampshire to adopt a Bitcoin reserve. However, similar efforts in other states have hit roadblocks. Governors in Arizona and Florida recently vetoed or withdrew crypto reserve bills, citing concerns over volatility and financial prudence. Montana lawmakers also rejected a similar proposal.

Despite the risks, the momentum for public-sector Bitcoin investment continues to grow. At least 47 Bitcoin reserve bills have been introduced across 26 states, with 13 still active at the federal level. Governor Abbott, a long-time crypto supporter who has accepted Bitcoin donations since 2014, is widely expected to sign SB 21 into law.