Texas Approves State-Backed Bitcoin Reserve
Texas creates an official Bitcoin reserve to enhance long-term financial stability. Senate Bill 21 (SB21) has been signed into law after a strong 24-7 Senate vote approval. The Texas reserve is set to grow through airdrops, contributions, forks, and reports.
In a historic move, Texas Governor Greg Abbott has formally signed SB21 into law. This new law establishes the Texas Strategic Bitcoin Reserve, a fund managed by the state government, to be used as a long-term component in the state’s finances.
By this ruling, Texas becomes the third U.S. state, after New Hampshire and Arizona, to officially declare a state Bitcoin reserve. SB21 was signed after a successful vote in the Texas Senate. In May 2025, the bill passed with a majority of 24-7.
The Bitcoin reserve will exist independently within the state’s treasury system, enhancing monetary stability in Texas and acting as a hedge against inflation and economic uncertainty. The legislation establishes a strict requirement that only cryptocurrencies with an average market capitalization exceeding $500 billion over the last 24 months can be included. Currently, Bitcoin is the only coin meeting this criterion.
The reserve will be managed by the Texas Comptroller of Public Accounts, with a three-member advisory committee guiding its strategy and decisions. Home Bill 4488, signed along with SB21, safeguards the Bitcoin fund from being used to finance non-related state expenses. The reserve is designed to receive airdrops, donations, and other digital benefits to naturally grow the fund.
Progress reports on the Bitcoin reserve’s performance will be submitted to the Texas legislature every two years for transparency and accountability. This move positions Texas at the forefront of digital asset management, potentially attracting more crypto businesses and investments while paving the way for other states to follow suit for stronger financial planning.
The establishment of the Texas Strategic Bitcoin Reserve signifies a significant shift in state asset management, heralding a new era of financial diversification.
