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Texas Makes History with Nation’s First State-Backed Bitcoin Reserve
- Texas is the third US state to establish a Bitcoin reserve, but is the first to commit public capital to the initiative.
- The reserve will be managed by the Texas Comptroller, advised by the crypto board, and will operate independently from the state treasury.
- Only cryptocurrencies with a 12-month average market cap above US$500 billion (AU$778 billion) can be included.
Texas has become the first US state to establish a publicly funded Bitcoin reserve following Governor Greg Abbott’s signing of Senate Bill 21 (SB 21) into law on 20 June.
The Bitcoin reserve is set up outside the state treasury system but remains under the authority of the Texas Comptroller of Public Accounts. An advisory committee of three crypto investment professionals will guide the reserve’s operations.
Only cryptocurrencies with an average market capitalisation of at least US$500 billion (AU$778 billion) over a 12-month period may be included in the fund. This effectively limits it to Bitcoin, which currently has a market cap of US$2.07 trillion (AU$3.22 trillion), and potentially Ethereum in the future.
The law allows the reserve to receive not only direct purchases, but also forks, airdrops, crypto donations and investment gains. A public report on the reserve’s performance and holdings will be published every two years.
Complementing SB 21, Abbott also signed House Bill 4488, which ensures the Bitcoin reserve cannot be swept into the state’s general fund, even if no assets have been acquired by mid-2026.
Related: Ukraine Moves Closer to Bitcoin Reserves with New Draft Law
A Growing National Trend
Texas is now the third US state to create a Bitcoin reserve, following Arizona and New Hampshire. However, Texas is the first to commit public funds and build a separate structure for Bitcoin holdings.
This legislation follows US President Donald Trump’s signing of an executive order in March, creating a federal strategic Bitcoin reserve, and encouraging states to adopt similar strategies. Other states including Michigan, Ohio, and Massachusetts are considering similar legislation, while proposals in states like Florida, Oklahoma, and Georgia have stalled or been repealed.
Related: Trump’s World Liberty Financial Issues Cease-and-Desist to Fight Fight Fight Over Unofficial Trump Crypto Wallet
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
