Key Insights
- Texas Governor Greg Abbott has signed SB21 into law, establishing the Texas Strategic Bitcoin Reserve, the first publicly funded state-run Bitcoin reserve in the U.S.
- The reserve, managed outside the state treasury, will be overseen by the Texas Comptroller and guided by a crypto advisory panel.
Austin, Texas (MarketsXplora) — Texas Governor Greg Abbott has signed Senate Bill 21 (SB21) into law, officially authorizing the creation of the Texas Strategic Bitcoin Reserve, making Texas the third U.S. state to establish a statewide Bitcoin fund and the first to allocate public money for such a reserve.
The new legislation sets Texas apart from previous efforts in Arizona and New Hampshire by establishing a stand-alone, publicly funded reserve that will be managed independently of the state’s general treasury. The Texas Comptroller of Public Accounts, Glenn Hegar, will oversee the fund’s operations, with investment guidance provided by a three-member advisory committee comprising crypto investment professionals.
According to the bill, only digital assets with a market capitalization exceeding $500 billion are eligible for inclusion in the reserve—criteria currently met solely by Bitcoin (BTC). The initiative is positioned as a long-term hedge against inflation and an effort to bolster the state’s financial resilience.
Why the Texas Bitcoin Reserve Could Be a Turning Point for Public Finance
“We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years,” said State Senator Charles Schwertner, who authored the bill, during legislative discussions in February.
Governor Abbott also signed House Bill 4488, which safeguards the Bitcoin reserve from being absorbed into the state’s general revenue fund through routine fund sweeps. The bill further guarantees the legal existence of the reserve even if no Bitcoin purchases are made by summer 2025.
The reserve may grow not only through direct Bitcoin acquisitions but also via forks, airdrops, public crypto donations, and investment gains. A comprehensive public report on the reserve’s holdings and performance is mandated to be published every two years.
Texas Blockchain Council founder and president Lee Bratcher welcomed the move, estimating that the state could invest “tens of millions of dollars” into Bitcoin. “While it sounds significant, it is a very modest amount for a state the size of Texas,” Bratcher said. He emphasized that the decision on when and how much Bitcoin to purchase will lie solely with professional asset managers at the comptroller’s office, applying standard investment protocols.
Neither SB21 nor HB4488 were included in a press release from the governor’s office highlighting 16 “critical” pieces of legislation signed on Saturday, though Abbott enacted a total of 334 bills that day.
The move reflects a growing trend among institutions adopting Bitcoin as a treasury asset. Last Friday, Bitcoin holding company Nakamoto Holdings—founded by U.S. President Donald Trump’s crypto adviser David Bailey—secured $51.5 million in a private placement deal to expand its BTC holdings. Similarly, France-based The Blockchain Group recently added 182 BTC, valued at approximately $19.6 million, to its reserves, bringing its total to 1,653 BTC.
With the passage of SB21 and HB4488, Texas positions itself at the forefront of U.S. states integrating Bitcoin into public finance policy, embracing digital assets as a component of long-term economic strategy.