Texas is the first U.S. state to fund a Bitcoin reserve with a $10 million allocation.
Senate Bill 21 and HB 4488 ensure the reserve remains separate from state treasury and general revenue funds.
The Bitcoin reserve will be managed independently, marking a shift in how states approach digital asset holdings.
Texas has moved forward with a publicly funded Bitcoin reserve, becoming the first U.S. state to do so. Governor Greg Abbott signed Senate Bill 21 into law, officially directing the state to allocate $10 million for the purchase of bitcoin. This development places Texas ahead of other states that have introduced similar bills without committing actual funds.
https://twitter.com/CryptoCoinShow/status/1937305871832228003 $10 Million Budgeted for Digital Asset Holdings
The state’s new reserve will be created as a stand-alone financial structure, separate from Texas’ primary treasury system. Unlike Arizona and New Hampshire, which passed authorizing bills but provided no capital, Texas has assigned funds. The $10 million allocation represents about 0.0004% of the total state budget. The goal is to purchase bitcoin using public funds while keeping the asset separate from general revenue management.
A second bill, House Bill 4488, passed alongside Senate Bill 21. It ensures that Texas’ Bitcoin reserve will not be subject to routine financial transfers. These common fund sweeps move unused or surplus funds into the state’s general revenue account. HB 4488 blocks such transfers, allowing the reserve to remain untouched unless otherwise authorized by new legislation.
Reserve to Be Managed Outside the State Treasury
The Bitcoin holdings will be managed independently and will not be tied to the state's traditional cash assets or general ledger. This reserve marks a departure from conventional asset management at the state level. The move reflects a formalized process to hold digital assets under state control, separate from other financial instruments held by Texas.
Texas’ action follows recent federal announcements regarding national-level digital reserves. The Trump administration earlier introduced plans to build a federal crypto reserve, though it would rely on alternative funding sources. These include asset seizures and the issuance of crypto bonds rather than direct budget spending. In contrast, Texas has applied funds directly from its fiscal planning process.
Officials Emphasize Potential Signal to Financial Community
The Texas Blockchain Council commented on the move, describing the action as a potential signal to investors and entrepreneurs. Lee Bratcher, the group’s president, noted the allocation is minor relative to the state budget. However, the creation of a funded reserve may indicate a broader intent to treat digital assets as long-term holdings. Additionally, Alva replied by saying that this move will increase ETFs' activity and trust among institutions.
https://twitter.com/AlvaApp/status/1937295336982348064
With the legal framework in place, Texas will now move toward executing the Bitcoin purchases. Further information about the reserve’s operational management or timeline for acquisition has not yet been released. The state is expected to begin the process following fiscal coordination with the treasury office.
