Texas allocated $10 million in state funds to purchase bitcoin, making it the first U.S. state to actively fund a digital reserve.
Senate Bill 21 and HB 4488 ensure the bitcoin reserve is managed independently and protected from the state’s general fund reallocations.
The initiative highlights a shift in treating digital assets as long-term financial instruments rather than speculative investments by public institutions.
Texas has now clearly become the first U.S. state to create a publicly funded, stand-alone Bitcoin reserve. Governor Greg Abbott signed Senate Bill 21 into law, which directs the state to appropriate $10 million for bitcoin. The reserve will operate independently from the state treasury, therefore being structurally different from traditional financial management.
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The initiative is the first of its kind to move beyond legal authorization and into actual funding. While Arizona and New Hampshire passed similar legislation, Texas is actively investing state funds. This early step sets a benchmark for other jurisdictions considering digital asset integration at the state level.
Companion Bill Protects Reserve from State Fund Sweeps
The state passed a second measure, HB 4488, to ensure the reserve remains separate from general revenue operations. The bill protects bitcoin holdings from routine fund sweeps, a practice where unused funds are transferred into the state’s general fund for reallocation.
This protective measure supports the autonomy of the bitcoin reserve. It signals a legislative intent to treat bitcoin not as a speculative asset, but as a sovereign financial instrument. With this law in place, the reserve can function without risk of being absorbed into unrelated state spending.
Lee Bratcher, president of the Texas Blockchain Council, pointed out that the $10 million allocation represents just 0.0004% of Texas’s budget. He emphasized that the move reflects the state’s acknowledgment of digital finance as a legitimate part of the financial future.
Texas Reserve Offers Distinct Path from Federal Crypto Strategy
The decision arrives shortly after the federal government introduced plans for a national crypto reserve. However, the federal version relies on crypto-related seizures and bond issuance rather than direct funding. In contrast, Texas is using budgeted funds to acquire bitcoin for long-term holding.
This approach positions Texas as a leader in public crypto adoption. The state’s model provides a framework for treating bitcoin as a financial reserve rather than a regulatory asset. Through these laws, Texas has created a clear path for integrating digital assets into public finance without merging them into broader fiscal operations.
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