Texas Considering Creation of Bitcoin Reservoir
Texas Establishes Bitcoin Reserve as Long-Term Financial Asset
Texas is making history in the world of digital assets, becoming the first U.S. state to commit public funds into a standalone Bitcoin reserve. The groundbreaking move, known as SB-21, was signed into law by Governor Greg Abbott on June 22, 2025.
Championed by Senator Charles Schwertner, SB-21 establishes the Texas Strategic Bitcoin Reserve as a state-managed fund dedicated to holding Bitcoin as a long-term financial asset. The reserve operates independently from Texas’s general treasury and is overseen by the Texas Comptroller of Public Accounts, with guidance from an advisory committee of crypto investment professionals.
The fund holds Bitcoin exclusively, aligning with a market capitalization threshold that only Bitcoin currently meets (over $500 billion). The reserve grows through direct Bitcoin purchases, forks, airdrops, investment earnings, and public donations. The purpose is to hedge against inflation and geopolitical risks by diversifying the state’s financial strategy into digital assets.
If successful, the regulation will position Texas as a national reference in the integration of digital assets into public finances. The Bitcoin Strategic Reserve, if established, could have profound implications for the state’s economy and politics. It could boost market confidence, legitimizing Bitcoin as a financial asset and opening the door to new innovative applications and use cases.
The bill proposes a limit on investment in Bitcoin to a maximum of 1% of the state’s uncommitted general balance per biennium. This move parallels the broader U.S. Strategic Bitcoin Reserve established federally in 2025, which holds 200,000 BTC and seeks to legitimize Bitcoin at both state and federal levels as part of economic strategy and geopolitical positioning.
Meanwhile, New Hampshire has also taken steps towards state investment in Bitcoin. The state has approved legislation allowing up to 5% of certain funds to be allocated to high-market-cap digital assets. If passed, Texas would be the third state in the country to hold Bitcoin as a reserve asset, following Wyoming and Michigan.
The enactment of SB-21 is currently in an advanced legislative phase, having received the green light from the House General Government Efficiency & Economic Development Committee. The bill awaits a floor vote in the House before it can go to Governor Abbott's office for signing and enactment.
As the race for the creation of strategic Bitcoin reserves continues, Texas is poised to take a leading role in the integration of digital assets into public finances. The move signals growing institutional acceptance of Bitcoin as a strategic asset and marks a significant shift in how public entities are incorporating digital assets into financial reserves.
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