The post Texas governor signs Bitcoin reserve bill into law appeared on BitcoinEthereumNews.com.

Key Takeaways Texas has established a Bitcoin reserve as part of its financial strategy. The reserve requires Bitcoin to have maintained an average market cap of $500 billion over 24 months. Texas Governor Greg Abbott has signed Senate Bill 21 (SB 21) into law, paving the way for the state to establish a Bitcoin reserve as part of its financial strategy. With this move, Texas becomes the third state in the US to adopt Bitcoin as a strategic asset, joining New Hampshire and Arizona, the first two states to pass Bitcoin-focused bills. Authored by Senator Charles Schwertner, SB 21, also known as “The Texas Strategic Bitcoin Reserve Act,” aims to enable the establishment of a Bitcoin reserve outside the state treasury that the state comptroller will manage. The reserve is designed to allow the state to invest in Bitcoin and other qualifying crypto assets as a hedge against inflation, economic volatility, and to enhance overall financial resilience. However, under the law, the assets must maintain an average market capitalization of at least $500 billion over the previous 24 months. As of now, only Bitcoin meets this criterion. Bitcoin currently sits at over $2 trillion in market valuation, per CoinGecko data. The second-largest crypto asset, Ethereum, currently has a market cap of around $307 billion. While it does not yet meet the $500 billion 24-month average required by SB 21, it could qualify for inclusion in the reserve if its market cap rises over time. The legislation also authorizes the formation of a five-member advisory committee to guide the reserve’s management, including the comptroller and three crypto investment experts. The comptroller can contract with qualified custodians for secure storage and liquidity providers with at least five years’ digital asset trading experience. Before being signed into law, the bill passed the Texas…

---

Filed under: News - @ June 21, 2025 10:19 pm