Quick overview

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The Texas House of Representatives advanced Senate Bill 21 in a second reading, paving the way for the state to establish a strategic Bitcoin reserve.

The bipartisan initiative proposes the creation of a special fund—outside of the state treasury—managed by the Comptroller of Public Accounts, dedicated to purchasing and holding Bitcoin and other qualifying digital assets.

A key amendment, introduced by Democrat Linda García, raises the eligibility bar by requiring assets to maintain a market capitalization of at least $500 billion for 24 consecutive months.

The bill’s goals are threefold:

• Hedge state finances against inflation,
• Diversify public reserves beyond traditional instruments,
• And position Texas as a national leader in institutional crypto adoption.

If it passes a third reading and is signed into law by Governor Greg Abbott, Texas would become the third U.S. state to hold an official Bitcoin reserve, joining New Hampshire and Arizona. Already home to 28% of the country’s Bitcoin mining capacity, Texas is reinforcing its role as a hub of digital financial innovation.

Michigan Pushes Comprehensive, Sustainable Crypto Legislation

Meanwhile, Michigan introduced a bold package of pro-crypto legislation aimed at modernizing financial regulation. The four proposed bills strike a balance between technological adoption, environmental responsibility, and institutional safeguards:

• HB 4510 allows public pension funds to invest in crypto assets like Bitcoin—but only through regulated vehicles such as ETFs, and only if those assets have averaged a market cap of at least $250 billion.
• HB 4511 bans state agencies from promoting central bank digital currencies (CBDCs) and protects crypto users and businesses from discriminatory tax or regulatory treatment.
• HB 4512 and HB 4513 promote Bitcoin mining at abandoned oil and gas wells by offering tax incentives in exchange for environmental remediation and the use of residual energy—an innovative approach that ties crypto to sustainability.

Federal Momentum: Clear Rules to Support Innovation

At the federal level, two key proposals are also gaining traction to provide national regulatory clarity.

The Blockchain Regulatory Act, led by Republican Tom Emmer, seeks to exempt non-custodial blockchain developers and services from “money transmitter” regulations, shielding decentralized innovation from excessive oversight.

The Financial Innovation and Technology for the 21st Century Act (FIT Act), sponsored by Democrat Ritchie Torres, would establish a jurisdictional framework assigning regulatory authority to the SEC or CFTC based on asset decentralization. It also sets strict standards for stablecoin issuance, including full reserve backing and the option to choose between federal and state oversight.