React crashes after updating text input field a second time

I have a component where users can enter text into an input field

import { useState } from "react";

export function App() {
    const [txt, setTxt] = useState("");

    return (
        <input value={txt} onInput={(e) => { setTxt(() => e.currentTarget.value); }} />
    );
}

Expected behaviour:

The input field should display the value of txt. Whenever the user types the onInput event should trigger and update the value of txt.

Actual behaviour

The code crashes after triggering the onInput event for the second time. I get errors like

Uncaught TypeError: Cannot read properties of null (reading 'value')
    at <anonymous>:41:36
    at basicStateReducer (<anonymous>:12325:51)
    at updateReducer (<anonymous>:12418:32)
    at updateState (<anonymous>:12654:20)
    at Object.useState (<anonymous>:13444:26)
    at useState (<anonymous>:1114:31)
    at App (<anonymous>:37:51)
    at renderWithHooks (<anonymous>:12163:28)
    at updateFunctionComponent (<anonymous>:15206:30)
    at beginWork (<anonymous>:16602:24)

and

The above error occurred in the <App> component:

    at App (<anonymous>:37:51)

Consider adding an error boundary to your tree to customize error handling behavior.
Visit https://reactjs.org/link/error-boundaries to learn more about error boundaries.

What is wrong with the code?