The post Texas Approves State-Backed Bitcoin Reserve appeared on BitcoinEthereumNews.com.

Texas creates official Bitcoin reserve to strengthen long-term financial stability. SB21 signed into law after strong 24–7 Senate vote approval. Texas reserve to grow via airdrops, donations, forks, and reports. In a historic move, Texas Governor Greg Abbott has officially signed Senate Bill 21 (SB21) into law. The new law itself establishes the Texas Strategic Bitcoin Reserve, a fund managed by state government, which should be used to store Bitcoin as a long-term element in the state finances. By this ruling, Texas becomes the third U.S state, after New Hampshire and Arizona, which formally declared a state Bitcoin reserve. Texas Creates Bitcoin Reserve to Hedge Against Inflation, Uncertainty SB21 is signed after a powerful vote of the Texas Senate. In May 2025, the bill passed the Senate by majority by 24-7. Initially, it was not a radical bill at all as it was first introduced on March 25, 2025, and then underwent many revisions on its way through the Senate and House of Representatives. Having agreed on the final version on a conference committee, the version was submitted to the Governor. Since signing the law, the Bitcoin reserve will exist separately with the general treasury system of the state. This will imply that the reserve will not be a combined financial instrument with the regular budget of Texas. By law, the reserve is supposed to enhance the financial stability in Texas and acts as a hedge against inflation and economic uncertainty. To guarantee safety and stability, the legislation also establishes a very rigid requirement: only cryptocurrencies whose average market capitalization was more than 500 billion dollars over the last 24 months, can apply. Currently, the only coin fitting under this criterion is Bitcoin. Such a rule restricts the risk and narrows the reserve on the most established digital asset. Moreover,…

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Filed under: News - @ June 22, 2025 7:14 pm