Texas Makes History with State-Backed Bitcoin Reserve under SB21 | BSCN (fka BSC News)

In a landmark move for crypto adoption in the U.S., Texas has become the first state to formally create a public Bitcoin reserve, cementing its place as a leader in blockchain innovation

Governor Greg Abbott signed Senate Bill 21 (SB21) into law, authorizing the Texas Strategic Bitcoin Reserve, a bold initiative that pushes the state’s financial infrastructure into the digital age.

This makes Texas the third U.S. state after Arizona and New Hampshire to pass a Bitcoin reserve law, but it’s the first to allocate public funds and set up a standalone structure for holding Bitcoin outside of its standard treasury system.

A State-Backed Bet on Bitcoin

The legislation restricts the reserve to assets with a market capitalization over $500 billion. Currently, that means Bitcoin is the sole eligible asset. The goal is to give Texas a hedge against inflation and introduce a layer of financial resilience that isn’t tied to fiat systems.

The fund will be administered by the state comptroller, with oversight from a three-member advisory panel consisting of crypto investment professionals. The reserve can grow through:

  • Bitcoin forks
  • Airdrops
  • Investment gains
  • Crypto donations from the public

Every two years, the comptroller is required to issue a public report detailing the fund’s performance and total holdings, making transparency a core component of the program.

Financial Sovereignty in the Age of Digital Assets

Unlike Arizona’s symbolic legislation or New Hampshire’s treasury-permitted purchases, Texas has committed actual resources to create an isolated vehicle for Bitcoin reserves.

Governor Abbott also signed House Bill 4488, which shields the Bitcoin reserve from being redirected into the state’s general revenue fund. This protection ensures that the fund is immune to political shifts and remains dedicated to its long-term objective of strengthening Texas’s financial stability.

Governor Abbott has long positioned Texas as a pro-crypto state. Last year, he declared:

"Texas is already the home of crypto mining. This session, Texas should become the crypto capital."

With this legislation, the state is turning that vision into reality. Texas already hosts some of the largest Bitcoin mining operations in the U.S. Its deregulated energy market and open land have made it an attractive hub for miners like Riot Platforms and Marathon Digital. SB21 could now further cement its reputation as a state that not only mines Bitcoin—but holds it.

The Growing Trend of Bitcoin in Treasuries

Texas’s decision to hold Bitcoin as a sovereign asset follows a trend emerging across both public and private sectors. Companies such as MicroStrategy, Nakamoto Holdings, and The Blockchain Group have recently expanded their Bitcoin holdings. Just a few days ago:

  • Nakamoto Holdings raised $51.5 million to acquire more BTC
  • The Blockchain Group added 182 BTC, bringing its total to 1,653 BTC

These moves reflect a growing consensus that Bitcoin may serve as a reliable reserve asset in an era of rising debt and uncertain monetary policy.

SB21 aligns with this trend but does so on behalf of the public, representing taxpayer interests. Unlike corporate treasuries, the Texas Bitcoin reserve will be managed with public oversight and regular reporting, making it one of the most transparent large-scale BTC holdings in the U.S.

Legal Clarity and Bipartisan Backing

The bill passed with bipartisan support, a rare feat in today’s political environment. While crypto remains a divisive issue on Capitol Hill, Texas lawmakers across party lines appear to agree that digital assets should play a role in the state’s economic planning.

This legal clarity could encourage more blockchain startups and investors to set up shop in Texas, particularly as federal regulation around crypto remains in flux.

Now that SB21 has become law, the state comptroller’s office will begin setting up the reserve. One of the first steps will be selecting the advisory committee and designing the Bitcoin custody structure.

There’s also speculation that the reserve could partner with Texas-based crypto custodians or use multi-signature wallets to enhance security. If implemented well, the model could be replicated by other states exploring crypto diversification strategies.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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