Texas Governor Greg Abbott has officially signed Senate Bill 21 (SB21), establishing the Texas Strategic Bitcoin Reserve, a groundbreaking move that makes Texas the first U.S. state to use public funds to hold Bitcoin.
In contrast to Arizona and New Hampshire, which also enacted similar laws on the Bitcoin reserve, Texas is unique because it establishes a special framework to handle BTC assets.
According to the bill, the fund operates separately from the state’s general treasury and aims to boost financial resilience while offering a potential hedge against inflation.
Only assets with a market cap over $500 billion qualify, and currently, this includes only Bitcoin, which is trading at $101,252. The Texas Comptroller of Public Accounts will oversee the reserve, with guidance from a three-member crypto advisory board.
The reserve may increase not only by direct purchasing of BTC but also by airdrops, forks, investment profit, or crypto donations. Every two years, the public will receive an annual report detailing its performance.
This bold step follows Abbott’s earlier approval of House Bill 4488, which ensures the Bitcoin fund remains protected from being absorbed into the state’s general budget.
Meanwhile, public companies continue to adopt Bitcoin for their treasuries. Nakamoto Holdings, led by Trump’s crypto adviser David Bailey, just raised $51.5 million to buy more BTC. France’s The Blockchain Group also bought 182 BTC worth $19M, boosting its total to 1,653 BTC.
As institutional interest grows, Texas’ entry into Bitcoin-backed finance could push other states to follow suit. The Lone Star State is betting big on Bitcoin, and the world is watching.
Also Read: Arizona Senate Revives Bitcoin Reserve Bill After Rejection
