Texas Becomes Third U.S. State to Establish Strategic Bitcoin Reserve as Governor Signs Bill Into Law
Texas Governor Greg Abbott has signed into law Senate Bill 21, a landmark piece of legislation that establishes a state-managed Bitcoin reserve, making Texas the third U.S. state to formally adopt such a strategy—following Arizona and New Hampshire. However, Texas is the first to create a stand-alone, publicly funded Bitcoin reserve managed outside its main treasury.
The reserve will be overseen by the Texas Comptroller of Public Accounts, Glenn Hegar, and aims to give the state exposure to Bitcoin as part of a broader strategy to diversify state-held assets. The bill’s sponsor, State Senator Charles Schwertner, argued earlier this year that Texas should have the option to invest in Bitcoin, citing its performance over the past decade.
In addition to SB 21, Abbott signed House Bill 4488, which protects the Bitcoin reserve from the state treasury’s periodic fund reallocations. The bill also ensures the legal standing of the reserve fund, even if no Bitcoin is purchased by the time the next fiscal cycle begins.
“This gives the state of Texas the flexibility to evaluate and potentially invest in one of the best-performing assets of the past decade,” said Schwertner in a prior statement.
According to Texas Blockchain Council President Lee Bratcher, the state could eventually invest tens of millions of dollars into Bitcoin. While the exact amount and timeline will be determined by investment professionals within the Comptroller’s office, Bratcher described the effort as a strategic, long-term move.
“My sense is that it will be in the tens of millions, which, for a state the size of Texas, is a modest but meaningful start,” Bratcher told The Block. “It’s a measured approach grounded in standard investment processes.”
Despite the significance of the legislation, neither SB 21 nor HB 4488 was mentioned in a Saturday press release from the governor’s office, which highlighted 16 “critical” bills among the 334 signed that day.
Still, the passage of the Bitcoin reserve law positions Texas as a growing leader in state-level digital asset adoption, reinforcing its reputation as one of the most crypto-forward jurisdictions in the United States.
Featured image from: fortune.com