Governor Greg Abbott signed Senate Bill 21 into law Sunday, making Texas the first U.S. state to allocate $10 million in public funds toward a standalone Bitcoin reserve. Known as the Texas Strategic Bitcoin Reserve, it will be independently managed by the State Comptroller and a five-member advisory committee including crypto investment experts.
The bill (SB 21) restricts investments to digital assets with a 24-month average market capitalization above $500 billion. By this criterion, only Bitcoin currently fits the threshold. The bill also allows the State to increase its BTC holdings, not only through direct purchases but also via airdrops, forks, donations, and investment returns. A companion bill the HB 4488, will ensure that the funds are protected from being swept into the general treasury.
Texas joins a growing wave of states across America that are looking to build strategic Bitcoin reserves. About 16 states have already introduced or passed legislation for such strategic reserves. States like Arizona and New Hampshire were among the first few to enact reserve laws. But they hadn’t specifically allocated public funds for this purpose. Several other states, like Montana, Pennsylvania, and Wyoming, have seen similar efforts stall or get vetoed.
Texas’s move is symbolic and strategic as it treats Bitcoin as “digital gold”. The state is aiming to hedge against inflation, diversify its financial assets, and position itself as a leader in public crypto finance. With public funding committed, this reserve could inspire other states to follow suit.
On March 6, 2025, President Trump signed an executive order establishing a Strategic Bitcoin Reserve along with a U.S. Digital Asset Stockpile, leading the way for states to move towards the creation of such reserves.