Texas governor signs bill adding Bitcoin to official reserves

Texas Governor Greg Abbott has signed Senate Bill 21 (SB21), officially creating the Texas Strategic Bitcoin Reserve, a state-managed fund that will hold Bitcoin as part of Texas's long-term financial assets. This makes Texas the first U.S. state to commit public funds to a standalone Bitcoin reserve, treating Bitcoin as a strategic asset to enhance financial resilience and hedge against inflation.

The reserve will operate independently from the state's general treasury system, insulated from routine budget reallocations, and only assets with a market capitalization exceeding $500 billion are eligible for inclusion—currently, only Bitcoin meets this criterion. The fund will be administered by the Texas Comptroller of Public Accounts, Glenn Hegar, and guided by an advisory committee consisting of three crypto investment professionals.

The reserve can grow not only through Bitcoin purchases but also via airdrops, investment gains, and public crypto donations etc. A public report on the reserve’s holdings and performance will be issued every two years to maintain transparency.

Additionally, Governor Abbott signed House Bill 4488 (HB4488), which protects the Bitcoin reserve and other special funds from being absorbed into the state's general revenue fund, ensuring the reserve's autonomy and legal protection even if no Bitcoin is purchased by the next summer.

This initiative positions Texas as a leader in institutional cryptocurrency strategy among U.S. states, following Arizona and New Hampshire in establishing Bitcoin reserves but distinguishing itself by allocating actual taxpayer funds to the effort. The move reflects a broader pro-crypto stance by the Texas government and aims to leverage Bitcoin’s potential as a store of value similar to gold or land.

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