Texas Signs Strategic Bitcoin Reserve Into Law

Summary: Texas has officially enacted legislation establishing a state-level strategic Bitcoin reserve, making it the third U.S. state to do so. The move signals a growing trend in public sector investment in digital assets amid increasing national support for crypto news and initiatives.

Texas Establishes Treasury-Independent Bitcoin Reserve

On June 20, Texas Governor Greg Abbott signed Senate Bill 21 (SB 21) into law, authorizing the creation of a strategic Bitcoin reserve outside the state treasury. Spearheaded by Senator Charles Schwertner, the law empowers the state’s comptroller of public accounts to manage the reserve and invest in approved digital assets.

The reserve will primarily hold Bitcoin but could also include other cryptocurrencies with a 12-month average market capitalization of at least $500 billion. Currently, only Bitcoin ($2.07 trillion) meets this threshold, though Ethereum ($272.3 billion) may qualify in the coming years.

While any transfers of digital assets into the state treasury require legislative approval through the general appropriations act or similar laws, the comptroller is permitted to liquidate or withdraw Bitcoin to cover reserve management costs. Additionally, House Bill 4488 (HB 4488), also signed into law, ensures that the new fund is exempt from automatic treasury sweeps and retains its legal standing regardless of purchase activity until at least mid-2026.

Growing State-Level Adoption of Bitcoin Reserves

Texas becomes the third U.S. state to formally implement a strategic Bitcoin reserve, following the footsteps of Arizona and New Hampshire. This momentum comes after U.S. President Donald Trump signed federal legislation on March 6 supporting the formation of digital asset reserves at both federal and state levels.

According to Bitcoin Laws, five other states—Michigan, Ohio, North Carolina, Rhode Island, and Massachusetts—currently have similar proposals under review. However, initiatives in states like Oklahoma, Florida, and Georgia have stalled or been repealed due to legislative barriers and political opposition.

Market Reaction and Bitcoin Price Update

Despite increased governmental adoption, Bitcoin’s price performance remains under pressure. As of press time, BTC is trading at $102,650, reflecting a 2.74% decline over the past week and a monthly drop of 7.50% amid ongoing market corrections.