Texas Governor Signs Bitcoin Reserve Law
Governor Abbott signs SB21, creating the Texas Strategic Bitcoin Reserve to hold Bitcoin as a public fund hedge against inflation and strengthen state finances.
Texas Governor Greg Abbott signed Senate Bill 21 into law on June 21, 2025, creating the Texas Strategic Bitcoin Reserve. The state-managed fund will hold Bitcoin using public money.
The reserve operates separately from Texas's general treasury system. Only assets with market caps above $500 billion can be included in the fund. Bitcoin is currently the only crypto asset that meets this requirement. The Texas Comptroller of Public Accounts will run the fund. Three crypto investment professionals will form an advisory committee to oversee operations.
The reserve can grow through direct Bitcoin purchases, forks, airdrops, investment gains, and public crypto donations. The state will publish a public report on the fund's holdings and performance every two years.
Abbott also signed House Bill 4488 on the same day. This law protects the reserve and other designated state funds from periodic transfers into the general revenue pool. The bill guarantees the fund's legal status even if Texas acquires no Bitcoin by summer 2025.
The legislation sets no specific timeline for Bitcoin purchases or target amounts for the reserve. The fund structure remains in place regardless of acquisition activity.
Texas becomes the third U.S. state to pass Bitcoin reserve legislation. Arizona and New Hampshire passed similar laws earlier, but Texas is the first to commit public funds and create a separate structure for Bitcoin holdings.
Related: Arizona Senate Revives Bitcoin Reserve Bill After Reconsideration Vote
The law takes effect immediately. However, the Texas Comptroller's office has not announced when it plans to begin Bitcoin purchases or how much the state intends to invest initially. The advisory committee will provide guidance on crypto investment strategies and market conditions.
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