Texas Governor Establishes State Bitcoin Reserve
Gov. Greg Abbott signed Senate Bill 21 (SB 21) into law Friday, creating a Texas Strategic Bitcoin Reserve and enabling related legislation (House Bill 4488) that secures its legal standing and funding.
Key Points
- The reserve qualifies as a permanent state fund, protected from annual budget sweeps.
- Only digital assets with a 24-month average market cap exceeding $500 billion can be included; Bitcoin currently meets this criterion.
- The Comptroller’s Office will manage the fund, operating under strict custody agreements with qualified providers.
- An advisory committee will provide oversight.
- The reserve aims to serve as a hedge against inflation and economic instability.
Implementation Details
The reserve can acquire Bitcoin through direct purchases, as a result of a blockchain fork, airdrops, or donations.
Assets will be stored using institutional-grade custody solutions contracted by the Comptroller.
The Comptroller has broad authority to manage reserve assets, including buying, selling, and holding Bitcoin.
Transparency is required, with public reports on the fund’s status and performance issued twice yearly.
Context: Texas Joins Pioneering States
Texas becomes the third U.S. state to create a public Bitcoin reserve with formal legal protections and dedicated funding mechanisms. New Hampshire was the first to authorize public Bitcoin investment (2019), while Arizona created a framework for managing unclaimed crypto assets, but neither approach included SB 21’s specific long-term funding guarantees.
HB 4488 ensures SB 21 creates a permanent state fund, shielding its authorized Bitcoin holdings from budget pressures and legislative interference.
