AUSTIN, TX – June 24, 2025 – Texas has officially cemented its position as a frontrunner in cryptocurrency adoption among U.S. states. Governor Greg Abbott has signed Senate Bill 21 (SB21) into law, paving the way for the creation of the Texas Strategic Bitcoin Reserve. This landmark legislation authorizes the allocation of $10 million in public funds to acquire Bitcoin, making Texas the first U.S. state to commit dedicated public funding to a standalone Bitcoin reserve.
The move underscores Texas's proactive approach to embracing the digital economy and leveraging emerging assets to bolster its financial resilience. The establishment of this reserve is seen as a strategic step to potentially hedge against inflation and economic volatility, treating Bitcoin as a long-term strategic asset.
Key Details of the New Legislation:
- Dedicated Funding: Unlike other states that have merely authorized Bitcoin reserves without allocating funds (such as Arizona and New Hampshire), Texas has explicitly earmarked $10 million for the initial purchase of Bitcoin.
- Independent Reserve: The Texas Strategic Bitcoin Reserve will operate as a special fund, independently managed by the Texas Comptroller of Public Accounts, Glenn Hegar. Crucially, it will be kept separate from the state's general treasury system. This independence is further reinforced by House Bill 4488 (HB4488), also signed by Governor Abbott, which protects the reserve from being swept into general state revenue.
- Market Capitalization Requirement: The bill stipulates that only cryptocurrencies with an average market capitalization exceeding $500 billion over the most recent 24-month period are eligible for inclusion in the reserve. Currently, Bitcoin is the only cryptocurrency that meets this stringent criterion.
- Advisory Committee: The Comptroller's office will be guided by an advisory committee composed of three seasoned crypto investment professionals, ensuring expertise in managing the digital assets.
- Growth Potential: Beyond direct purchases, the reserve is designed to grow through various means, including forks, airdrops, investment gains, and even public crypto donations.
- Transparency: A public report detailing the fund's holdings and performance will be issued biennially, promoting transparency and accountability.
A Bold Step for the Lone Star State:
The signing of SB21 marks a significant moment for Texas and the broader cryptocurrency landscape. State Senator Charles Schwertner, the bill's author, emphasized the rationale behind the move, stating, "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."
This legislative action aligns with Texas's existing crypto-friendly environment, which has already attracted a significant concentration of Bitcoin miners due to its affordable and abundant energy resources. The state has long championed innovation and economic freedom, and this latest development reinforces its commitment to being at the forefront of the digital revolution.
While the initial $10 million allocation might seem modest for a state of Texas's economic size, it represents a pivotal first step. Lee Bratcher, President of the Texas Blockchain Council, indicated that he anticipates the state will eventually invest "tens of millions of dollars" into the cryptocurrency, though the exact amounts and timing will be determined by the professionals at the Comptroller's office using proven investment standards.
Texas is now a trailblazer, demonstrating how a state can strategically integrate digital assets into its financial framework. This pioneering move could inspire other states to explore similar initiatives, potentially setting a precedent for wider public sector adoption of Bitcoin as a treasury asset across the United States. The world will be watching to see how the Texas Strategic Bitcoin Reserve performs and influences the future of state-level cryptocurrency integration.