Texas has officially entered the world of crypto treasury management. Governor Greg Abbott has signed a new law to create a Bitcoin reserve, making Texas the third U.S. state—after Arizona and New Hampshire—to treat Bitcoin as a strategic asset for the state.
The new law, known as Senate Bill 21 (SB21) or “The Texas Strategic Bitcoin Reserve Act,” was signed over the weekend. It allows the state to hold Bitcoin and potentially other major cryptocurrencies as part of a reserve fund managed by the Texas Comptroller of Public Accounts.
What the Law Means for Texas
The law does not simply add Bitcoin to the state’s treasury—it creates a separate crypto reserve fund that can be used to hedge against inflation and other economic risks. This move reflects growing confidence in Bitcoin as a long-term store of value, especially in uncertain times.
However, the law includes strict rules: only digital assets with an average market cap of at least \$500 billion over the last two years can be included. Right now, Bitcoin is the only cryptocurrency that qualifies under this rule, with a current market value of over \$2 trillion, according to CoinMarketCap.
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Governor Abbott also recently signed House Bill 4488, which protects the Bitcoin reserve from being merged with the state’s general budget. That means the Bitcoin fund can’t be touched for unrelated state expenses, keeping it safe from political or economic changes.
A Bigger Crypto Strategy?
Texas isn’t alone in looking to add Bitcoin to government reserves. At the federal level, former President Donald Trump has pushed for a similar plan. Back in March, Trump signed an executive order to explore creating a national strategic Bitcoin reserve, along with a separate fund for other digital assets.
Senator Cynthia Lummis of Wyoming also reintroduced the BITCOIN Act, which proposes that the federal government should gradually acquire around 1 million BTC over the next five years—without adding to the national debt.
With SB21 now law, Texas could take the lead in crypto adoption among U.S. states—and even beat the federal government to building a real Bitcoin stockpile.
