Texas Becomes First U.S. State to Launch Publicly Funded Bitcoin Reserve
KEY FACTS: Texas has become the first U.S. state to establish a publicly funded Bitcoin reserve with the enactment of Senate Bill 21 (SB21) on June 22, 2025, signed by Governor Greg Abbott. The Texas Strategic Bitcoin Reserve, managed by the Texas Comptroller of Public Accounts and guided by a three-member advisory committee, will hold Bitcoin as a long-term strategic asset, restricted to digital assets with a market capitalization exceeding $500 billion, currently only Bitcoin. House Bill 4488 protects the reserve from being absorbed into the state’s general revenue, ensuring its longevity, while allowing public donations to bolster the fund.
Source: Seal of Texas
Texas Becomes First U.S. State to Launch Publicly Funded Bitcoin Reserve
Governor Greg Abbott has signed Senate Bill 21 (SB21) into law on June 21, 2025, officially establishing the Texas Strategic Bitcoin Reserve. This legislation makes Texas the first U.S. state to allocate public funds to a standalone Bitcoin reserve and a pioneer in integrating cryptocurrency into public finance. The move reflects a growing acceptance of Bitcoin as a strategic asset amid rising institutional interest and economic uncertainty.
The Texas Strategic Bitcoin Reserve, created under SB21, is designed to operate independently of the state’s general treasury system. Managed by the Texas Comptroller of Public Accounts and guided by an advisory committee of three cryptocurrency investment professionals, the fund will hold Bitcoin as a long-term strategic asset. The legislation stipulates that only digital assets with a market capitalization exceeding $500 billion are eligible for inclusion—a threshold currently met solely by Bitcoin (BTC). This restriction underscores Texas’ commitment to prioritizing stability and liquidity in its cryptocurrency investments.
Governor Abbott, a vocal supporter of blockchain innovation, hailed the initiative as a forward-thinking strategy to boost Texas’ financial resilience. He hailed Bitcoin’s unique properties as a decentralized, inflation-resistant asset, making it a powerful tool to enhance our state’s financial stability and capitalize on its strategic value.
The reserve’s creation comes at a time when Bitcoin is increasingly viewed as a hedge against inflation, particularly as global economies grapple with rising prices and monetary policy challenges. Proponents argue that Bitcoin’s fixed supply of 21 million coins and decentralized nature make it an attractive alternative to traditional assets like gold.
Complementing SB21, Governor Abbott also signed House Bill 4488 (HB4488) into law, which provides critical legal protections for the Bitcoin reserve. HB4488 ensures that the reserve and other designated state funds, such as the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account, are shielded from being absorbed into the state’s general revenue pool. Without this legislation, the Bitcoin reserve could have faced automatic dissolution in 2025 under existing budgetary reallocation rules.
HB4488 also allows for public participation, enabling Texas residents to donate Bitcoin to the reserve. This community-driven approach has been praised by cryptocurrency advocates, who see it as a way to transform state policy into a collaborative effort.
Texas is the third U.S. state to approve a Bitcoin reserve law, following Arizona and New Hampshire, which enacted similar legislation in early May 2025. However, Texas stands alone as the first to commit public funds to a dedicated, standalone Bitcoin reserve. Arizona’s HB 2749 redirects proceeds from unclaimed property into Bitcoin, while New Hampshire’s HB 302 authorizes up to five percent of certain public funds to be invested in assets with a market capitalization exceeding $500 billion. Texas’ more aggressive approach—creating a separate fund with direct public investment—has sparked speculation about a “State Reserve Race” among U.S. states vying to embrace cryptocurrency.
To ensure prudent management, the Texas Strategic Bitcoin Reserve will adhere to strict governance and transparency guidelines. The Texas Comptroller of Public Accounts is empowered to purchase, hold, and manage Bitcoin using legislative appropriations, designated revenues, and investment returns. The fund mandates the use of cold storage for security and authorizes third-party custodians to safeguard assets. Additionally, the reserve may grow through forks, airdrops, investment gains, or public donations.
To promote accountability, the legislation requires a biennial public report detailing the fund’s holdings and performance. This transparency measure is intended to build public trust and provide clarity on the state’s cryptocurrency investments. The advisory committee, composed of three seasoned crypto investment professionals, will play a key role in guiding the fund’s strategy. Their expertise is expected to help navigate the volatile cryptocurrency market, which remains a point of concern for critics.
Texas’ Bitcoin reserve adds to the larger wave of institutional and governmental interest in cryptocurrency. Globally, institutional adoption of Bitcoin is accelerating. In Texas, the Bitcoin reserve aligns with the state’s embrace of blockchain technology. The state has already established itself as a hub for cryptocurrency mining, thanks to its abundant energy resources and business-friendly policies. The Texas Blockchain Council, a leading industry group, praised the new legislation as a “game-changer” for the state’s economy.
The Comptroller’s office is expected to begin developing operational guidelines in the coming months, including details on cold storage protocols and third-party custodians. The advisory committee’s formation will also be closely watched, as its members’ expertise will be critical to the fund’s success. The biennial report, due in 2027, will provide the first comprehensive look at the reserve’s performance. Analysts predict that the fund’s early years will be marked by cautious investment and close monitoring of Bitcoin’s market dynamics.
With the Texas Strategic Bitcoin Reserve now a reality, the state is poised to navigate uncharted financial territory, balancing innovation with responsibility in the present-day economic sector.
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Don’t mess with Texas they say.
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