Texas has officially launched its Strategic Bitcoin Reserve , becoming the first U.S. state to commit public funds to Bitcoin with long-term legal protections in place.
Governor Greg Abbott signed Senate Bill 21 (SB 21) into law, marking a major milestone in state-level cryptocurrency policy. The bill establishes a dedicated reserve that allows the Texas Comptroller to buy, sell, hold, or manage Bitcoin as part of the state’s broader financial strategy.
According to the legislation, the reserve is designed to act as a “hedge against inflation and economic volatility,” enhancing the state’s fiscal resilience. This move positions Texas at the forefront of institutional adoption of digital assets among U.S. states.
The bill was passed by the Texas House of Representatives on May 21 after overcoming initial opposition. Now signed into law, it opens the door for Texas to begin accumulating Bitcoin through multiple channels: direct purchases, forks, airdrops, or donations—offering flexibility in how the state builds its holdings.
However, only Bitcoin currently meets the strict eligibility criteria outlined in the law. To qualify for inclusion in the reserve, a digital asset must maintain an average market capitalization of at least $500 billion over a 24-month period —a threshold no other cryptocurrency has yet reached.
To ensure security and compliance, the comptroller will be required to use institutional-grade custody solutions. Specifically, the law mandates that reserve assets be stored via contracts with qualified custodians or liquidity providers, aligning with industry best practices.
Transparency is also built into the framework: the comptroller must issue biannual reports detailing the reserve’s status and performance, which will be made publicly available and submitted to state leadership.
Importantly, Texas is not the first state to explore crypto-related frameworks. New Hampshire previously authorized public investment in Bitcoin but kept those assets within the general state treasury without creating a separate reserve or long-term safeguards. Arizona established a fund for managing unclaimed crypto but did not allocate new public funds or pursue active investment.
What sets Texas apart is the inclusion of House Bill 4488 , which ensures the longevity of the Strategic Bitcoin Reserve. HB 4488 legally protects SB 21 from being dissolved when the legislative session ends—a fate that would have otherwise awaited the fund under standard procedures. It also shields the reserve’s revenue from being redirected into the general state budget, preserving its financial independence.
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