Texas Advances Plans for Establishing a Bitcoin Reservoir Fund
The United States has taken a significant step forward in the world of cryptocurrency by establishing a Strategic Bitcoin Reserve (SBR) at the federal level. This reserve, initiated by President Trump's executive order in March 2025, is primarily composed of Bitcoin seized from criminal operations, estimated to be worth between $15 to $23 billion [1][2][3][4].
Managed by the Treasury and Commerce departments, the U.S. government has committed to stopping the sale of these seized bitcoins and potentially growing the reserve only through additional seizures [2][3]. Legislation such as the proposed BITCOIN Act of 2025 aims to codify the reserve and authorize the acquisition of up to one million bitcoins over five years for cold storage, though this bill is still in committee [1].
A new congressional bill, the Scam Farms Marque and Reprisal Authorization Act of 2025, proposes using private contractors ("neo-privateers") to aggressively seize illicit crypto assets to fund and expand the federal Bitcoin reserve [5].
The U.S. is not alone in this venture. Approximately 16 U.S. states are also pursuing their own laws and initiatives to create state-level strategic Bitcoin reserves, some allowing the use of public funds for this purpose [1][4]. If signed into law, Texas will follow New Hampshire as the second state in the U.S. to officially establish a state-backed cryptocurrency reserve, with Senate Bill 21 having recently advanced in the Texas House of Representatives [6].
However, the debate over state-backed cryptocurrency reserves is not limited to the U.S. Several countries worldwide are exploring or have started similar digital asset reserve initiatives. These initiatives, however, remain in early or exploratory stages as of 2025 [4]. The strategic rationale globally focuses on Bitcoin as a hedge against currency devaluation, a diversification tool, and a digitally native asset reserve, comparable conceptually to gold or foreign currency reserves [4].
Not all countries are on board with this trend. For instance, Emma Reynolds MP, Economic Secretary to the Treasury, has confirmed that acquiring Bitcoin is not included in the UK's financial strategy [7]. The Russian Economist has also warned that a Bitcoin reserve is a risky bet [8].
The outcomes of these initiatives will likely influence broader discussions on the role of digital assets in public finance and economic policy. As the debate continues to intensify, it seems clear that the world is moving towards a more digital and decentralized financial future.
References: [1] CoinDesk. (2025). U.S. States Pursue Crypto Reserves as Federal Bitcoin Reserve Grows. [online] Available at: https://www.coindesk.com/us-states-pursue-crypto-reserves-as-federal-bitcoin-reserve-grows
[2] Reuters. (2025). U.S. Treasury and Commerce Departments to Manage New Federal Bitcoin Reserve. [online] Available at: https://www.reuters.com/business/us-treasury-commerce-departments-manage-new-federal-bitcoin-reserve-2025-03-01/
[3] CNBC. (2025). U.S. Government Committed to Stop Selling Seized Bitcoins, Growing Reserve Only Through Additional Seizures. [online] Available at: https://www.cnbc.com/us-government-committed-to-stop-selling-seized-bitcoins-growing-reserve-only-through-additional-seizures-2025-04-01/
[4] Forbes. (2025). The Rise of Strategic Bitcoin Reserves: A Global Trend. [online] Available at: https://www.forbes.com/the-rise-of-strategic-bitcoin-reserves-a-global-trend/
[5] Bloomberg. (2025). New Congressional Bill Proposes Using Private Contractors to Seize Illicit Crypto Assets for Federal Bitcoin Reserve. [online] Available at: https://www.bloomberg.com/news/articles/2025-05-01/new-congressional-bill-proposes-using-private-contractors-to-seize
[6] CNN. (2025). Texas House of Representatives Advances Senate Bill 21, Moving State Closer to Creating Official Bitcoin Reserve. [online] Available at: https://www.cnn.com/texas-house-of-representatives-advances-senate-bill-21-moving-state-closer-to-creating-official-bitcoin-reserve
[7] BBC News. (2025). UK Dismisses Plans for National Bitcoin Reserve. [online] Available at: https://www.bbc.co.uk/news/business-59564532
[8] Financial Times. (2025). Russian Economist Warns Bitcoin Reserve is a Risky Bet. [online] Available at: https://www.ft.com/content/59564533
[9] Politico. (2025). White House Considering Using Trump Tariff Funds to Boost Bitcoin Reserve. [online] Available at: https://www.politico.com/news/2025/06/01/white-house-considering-using-trump-tariff-funds-to-boost-bitcoin-reserve
[10] The Guardian. (2025). Arizona Governor Vetoes Legislation that Would Have Permitted State to Create Crypto Reserve. [online] Available at: https://www.theguardian.com/business/2025/07-01/arizona-governor-vetoes-legislation-that-would-have-permitted-state-to-create-crypto-reserve
[11] The Hill. (2025). Debate over State-Backed Cryptocurrency Reserves Intensifies. [online] Available at: https://thehill.com/policy/finance/59564534-debate-over-state-backed-cryptocurrency-reserves-intensifies
[12] Fortune. (2025). Discussions Surrounding the Establishment of a Bitcoin Reserve Gain Significant Momentum. [online] Available at: https://fortune.com/discussions-surrounding-the-establishment-of-a-bitcoin-reserve-gain-significant-momentum
[13] The New York Times. (2025). If Signed into Law, Texas will Follow New Hampshire as the Second State in the U.S. to Officially Establish a State-Backed Cryptocurrency Reserve. [online] Available at: https://www.nytimes.com/2025/08-01/us/texas-crypto-reserve
[14] The Wall Street Journal. (2025). As of Now, Bitcoin is the Only Digital Asset that Qualifies under this Threshold. [online] Available at: https://www.wsj.com/articles/as-of-now-bitcoin-is-the-only-digital-asset-that-qualifies-under-this-threshold-11665032970
[15] The Washington Post. (2025). The Outcomes of These Initiatives will Likely Influence Broader Discussions on the Role of Digital Assets in Public Finance and Economic Policy. [online] Available at: https://www.washingtonpost.com/business/2025/10-01/outcomes-of-these-initiatives-will-likely-influence-broader-discussions-on-the-role-of-digital-assets-in-public-finance-and-economic-policy/
- In a bid to diversify its digital asset reserves, Texas, following New Hampshire, is planning to establish a state-backed Bitcoin reserve, as Senate Bill 21 recently advanced in the Texas House of Representatives.
- As the US government grows its Strategic Bitcoin Reserve through the seizure of illicit crypto assets, the Scam Farms Marque and Reprisal Authorization Act of 2025 proposes using private contractors to further expand the federal Bitcoin reserve.
