Texas officially opened its state-managed fund #للبيتكوين , as Governor Greg Abbott signed Senate Bill 21 into law on Friday, establishing the state's strategic Bitcoin reserve and thus joining two other states in this process.
The reserve enhances the state's financial flexibility by acting as a 'hedge against inflation and economic volatility,' where the comptroller is authorized to buy, sell, or hold any investments in the reserve or manage them, as stated in the bill.
Governor Abbott's signature comes a month after the Texas House passed the legislation on May 21, despite initial opposition to the bill.
Texas's strategic Bitcoin reserve will operate according to detailed operational guidelines. Digital assets can enter the reserve through multiple pathways: 'direct purchase, split, airdrop, or as a donation.' This flexibility allows the state to accumulate Bitcoin through various market mechanisms beyond simple purchases.
However, the legislation requires that any qualified digital asset maintain an 'average market capitalization of at least $500 billion for a 24-month period' before acquisition, a threshold currently only met by Bitcoin.
The security procedures for reserve assets will adhere to institutional standards, requiring the comptroller to 'contract with a qualified custodian or liquidity provider' to store the assets, thereby ensuring that custody arrangements align with industry best practices.
An advisory committee will oversee the matter, but the comptroller retains authority. The bill imposes transparency through status and performance reports, which must be publicly available and submitted twice a year to state leadership.
While Texas ranks third after New Hampshire and Arizona in exploring frameworks for cryptocurrencies, it is the first U.S. state to commit public funds with explicit legal protection. The reserve cannot be dissolved by future legislatures either, even if no Bitcoin purchases occur immediately.
New Hampshire was the first to authorize public investment in Bitcoin, but it kept those assets within the state treasury without creating a separate reserve or long-term legal protection.
Meanwhile, Arizona created a regulated fund for unclaimed cryptocurrencies, but it has not committed any new public funds or sought active investment.
The legal protection of the Texas bill falls under House Bill 4488, which enables Senate Bill 21 to function as intended and ensures that Texas's strategic Bitcoin reserve will not be automatically abolished at the end of the legislative session, as typically happens with new state funds.
House Bill 4488 legally exempts Senate Bill 21 from default repeal and protects its allocated revenues and benefits from being redirected to the state's public funds. In fact, it ensures the long-term viability and financial independence of the Bitcoin reserve authorized under Senate Bill 21.
