The state of Texas is on track to become the first U.S. state to establish a strategic Bitcoin reserve, following the national executive order signed by President Donald Trump.

A Texas Senate bill approving the creation of a state Bitcoin reserve has already passed with a 25-5 vote and is expected to move forward in the House.

Frank Holmes, Executive Chairman of HIVE Digital Technologies, sees this as a pivotal moment for the industry. Speaking with Scott Melker on TheStreet Roundtable , Holmes called the move “a phenomenal step” for Bitcoin’s legitimacy as a financial asset.

“Markets said they were disappointed, they were expecting a bunch of other things. I think there’s going to be a series of steps,” he said, emphasizing that regulatory clarity will be the next major milestone.

Texas leads the way

Texas has long been a hub for Bitcoin mining, and Holmes believes the state’s approach to Bitcoin mirrors its strong history with gold.

“The state of Texas loves gold,” he noted. “In fact, they had their gold that was in New York brought down and built a vault in the state of Texas so that their gold is segregated under the great private property rights of Texas.”

With its business-friendly environment and abundant energy resources, Texas has positioned itself as the most Bitcoin-friendly state in the U.S. “Right now, the state of Texas is still the most robust state and opening arms for Bitcoin mining,” Holmes added.

The executive order signed by Trump has also directed U.S. officials to explore budget-neutral strategies for acquiring more Bitcoin, with many speculating that mining could be one such approach.

Holmes highlighted that some states, like New York, Maine, and Pennsylvania, have untapped energy resources that could support Bitcoin mining but currently face regulatory challenges. “There’s lots of potential in the state of New York, Maine, and Pennsylvania… but Texas still leads the way.”

A global economic powerhouse

Many experts believe Texas could take a more aggressive stance on Bitcoin than the federal government. With the eighth-largest economy in the world, its GDP is already larger than Brazil, Canada, and Russia despite having a fraction of their populations.

“People don’t realize that the GDP of Texas is bigger than Brazil with less than one-quarter of the population,” Holmes noted. “It’s bigger than Canada, it’s bigger than Russia. It bats above the norm around the world.”