Texas Governor Signs Law Creating First State-Managed Bitcoin Reserve
On June 21, 2025, Texas Governor Greg Abbott signed Senate Bill 21 (SB 21) into law, mandating the creation of the Texas Strategic Bitcoin Reserve. This reserve represents the first state-managed fund explicitly designed to purchase and hold bitcoin as a long-term investment.
Joining a Growing Trend
While Texas joins a handful of states considering or passing legislation regarding digital asset reserves (including Arizona and New Hampshire), SB 21 is the first to allocate specific state funds into a dedicated Bitcoin Reserve outside the general treasury.
Explicit Funding and Separation
A key feature of SB 21 is its explicit funding source separate from the state’s general treasury funds. According to the legislation and author Senator Charles Schwertner, “We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years.”
The separation is designed to protect reserve assets from general budget pressures, a point emphasized by SB 21’s companion bill, House Bill 4488, which ensures the reserve’s existence even pending initial purchases.
Structure and Oversight
The Bitcoin Reserve will be overseen by the Texas Comptroller of Public Accounts and guided by a three-member advisory committee composed of experts in Bitcoin investment.
Funding mechanisms include legislative appropriations, investment proceeds, fees, and voluntary Bitcoin donations. To manage risk, the law permits investment in digital assets with a market capitalization exceeding $500 billion — a standard currently met exclusively by Bitcoin.
Risk Management Enhancements
The bill underwent review and revision before final passage. The current version includes stronger risk controls, clearer investment rules, and restrictions on using reserve assets for speculative purposes.
Distinguished by Implementation
In contrast to legislative actions in Florida, Arizona, and New Hampshire, Texas stands out by creating a fully-funded, separately capitalized Bitcoin Reserve. Florida and Arizona bills were recently blocked, while New Hampshire’s plan involves holding Bitcoin within the existing state treasury.
Support and Strategic Vision
Advocates view the reserve as an inflation hedge and a diversification strategy. This aligns with Governor Abbott’s public stance favoring cryptocurrency. “Texas is already the home of crypto mining,” he noted previously. “This session, Texas should become the crypto capital.”
Lee Bratcher, President of the Texas Blockchain Council, anticipates potential investment in the tens of millions of dollars, adding, “It’s still early, and the comptroller is going to utilize proven investing standards to determine how much to buy, when to purchase.”
Corporate Bitcoin Adoption Increases
The momentum extends beyond government into the private sector. Public company Bitcoin holdings have surged recently. According to BitcoinTreasuries, over 223 companies now hold Bitcoin, up from 124 earlier this year. Total corporate holdings exceed 819,000 BTC, representing approximately 3.9% of the total supply.
