Texas Makes Historic Move: State-Backed Bitcoin Reserve Now Law

Reading Time: < 1 minute

Texas Governor Greg Abbott has signed SB21, creating the Texas Strategic Bitcoin Reserve—a sovereign Bitcoin treasury separate from the state’s general funds.

The reserve, managed by the Texas Comptroller and guided by crypto investment experts, will hold Bitcoin as a long-term asset, serving as both an inflation hedge and a diversification tool. Notably, only assets exceeding $500B in market cap (currently just Bitcoin) are eligible.

Growth mechanisms include direct purchases, forks, airdrops, and donations, with holdings disclosed every two years. The move follows HB 4488, which legally protects the reserve from budget reallocations.

Texas now stands apart from early adopters Arizona and New Hampshire by committing state funds and establishing a dedicated Bitcoin treasury—a major step in institutional crypto adoption.