Texas has officially become the first U.S. state to establish a strategic Bitcoin reserve backed by public funds, a landmark move set to bolster the state's financial resilience. Governor Greg Abbott on Monday signed Senate Bill 21 (SB21) into law, creating the Texas Strategic Bitcoin Reserve, a dedicated state fund for holding cryptocurrencies as a long-term strategic asset.
The new reserve will operate independently from Texas’ general treasury system. Its core objective, as outlined in the bill, is to fortify the state's financial stability, leveraging Bitcoin as a potential hedge against inflation and economic fluctuations. Currently, Bitcoin is the sole digital asset eligible for inclusion in the reserve, as the bill stipulates that only cryptocurrencies with an average market capitalization exceeding $500 billion over the past 12 months qualify.
Administration of the fund will fall under the purview of the Texas Comptroller of Public Accounts, who will be supported by an advisory committee comprised of three professionals specializing in digital asset investments.
The Texas Strategic Bitcoin Reserve is designed for growth through various channels. In addition to direct purchases, it can accumulate assets from forks, airdrops, investment gains, and even public cryptocurrency donations. To ensure transparency, a public report detailing the fund’s holdings and performance will be published every two years.
Complementing SB21, Governor Abbott also signed House Bill 4488, a crucial measure that safeguards the strategic Bitcoin reserve from being absorbed into the state’s general revenue fund. This ensures the reserve's operational and strategic independence, protecting it from shifts in budgetary priorities. HB4488 further guarantees the reserve’s legal existence even if no Bitcoin has been acquired by next summer.
While other states like Arizona and New Hampshire have passed similar legislation for Bitcoin reserves, Texas distinguishes itself as the first to directly commit public funds and establish a separate, dedicated structure for its Bitcoin holdings, signaling a significant step in the mainstream adoption of digital assets within public finance.
Cryptoniteuae, June 2025