Texas becomes third U.S. state to launch Strategic Bitcoin Reserve
Texas creates Strategic Bitcoin Reserve
Texas has officially established a state-run Strategic Bitcoin Reserve following the signing of Senate Bill 21 (SB 21) by Governor Greg Abbott. This landmark decision places Texas alongside Arizona and New Hampshire—pioneers in integrating digital assets into public financial strategy.
The new law represents a major step toward the mainstream adoption of cryptocurrencies and greater financial diversification at the state level.
Loading...
The Texas Strategic Bitcoin Reserve, created under SB 21, will be managed by the State Comptroller of Public Accounts and kept outside the traditional state treasury. Its core purpose is to serve as a hedge against inflation and economic volatility while enhancing the state's financial resilience. Only cryptocurrencies with an average market capitalization of at least $500 billion over the past two years are eligible for investment—a threshold currently met only by Bitcoin.
Funding, management, and legal protections
The reserve will be funded through legislative appropriations, voluntary donations, and investment returns. Under the law, all acquired Bitcoin must be stored in cold wallets for a minimum of five years. The fund will be overseen by a five-member advisory committee composed of the state comptroller and digital asset experts. This committee will publish public reports on the reserve every two years.
In addition to SB 21, Governor Abbott also signed House Bill 4488 (HB 4488), which protects the Bitcoin reserve and similar funds from being swept into the state’s general revenue fund. This legal safeguard ensures the long-term integrity and independence of the reserve.
Outlook and impact on other states
Notably, Texas is the first U.S. state to establish a fully autonomous and publicly funded reserve specifically for Bitcoin, CoinGape reports. While the initiative has received widespread support from the crypto industry, some critics—such as economist Peter Schiff—have warned of possible limitations. Schiff pointed out that if Bitcoin’s market capitalization drops below the required threshold, the state could be legally prohibited from making new purchases.
Loading...
Despite such concerns, this move is seen as part of a broader trend. More than two dozen U.S. states are currently considering similar legislation. Texas’s bold initiative may serve as a precedent, encouraging other states to treat Bitcoin not just as a speculative asset but as a legitimate component of public finance. As the digital financial landscape evolves, all eyes are now on Texas.
Read also: SEC approves Trump Media's proposal to establish a Bitcoin reserve
