Texas Governor Greg Abbott has given the final sign-off to a landmark legislation to establish a Bitcoin reserve, moving the state closer to officially adopting crypto as part of its treasury management.

Senate Bill 21, a bipartisan-backed bill, was signed into law on Saturday, making Texas the third state in the US to adopt Bitcoin as a strategic asset.

Texas Governor Approves Bitcoin Reserve Law

Texas has joined Arizona and New Hampshire in creating a state-run Bitcoin reserve fund.

SB21, also known as “The Texas Strategic Bitcoin Reserve Act,” seeks to enable the creation of a Bitcoin reserve outside the usual state treasury that the Texas Comptroller of Public Accounts will manage.

The reserve is intended to allow the state to invest in Bitcoin and other qualifying crypto assets to potentially hedge against inflation and economic uncertainty, as well as strengthen overall financial resilience.

However, the law requires that the assets must maintain an average market capitalization of around $500 billion over the previous 24 months. Bitcoin is the only crypto asset that meets this criterion. According to CoinMarketCap data, Bitcoin currently sits at over $2 trillion in market valuation.

SB21 follows Governor Abbott’s signing of House Bill 4488, which protects the reserve from being absorbed into the state’s general revenue fund, effectively insulating it from shifting budget priorities.

US Government’s National Plans

As the third to authorize its treasurer to set up a Bitcoin reserve, Texas could very well beat the U.S. government in forming a stockpile, too.

Governor Abbott’s approval comes as US President Donald Trump and Republican lawmakers propose similar policies at the federal level. Trump issued an executive order in March, authorizing the establishment of a national strategic Bitcoin reserve for the United States, along with a separate digital assets stockpile for other cryptocurrencies.

Wyoming Senator Cynthia Lummis, who reintroduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, proposed that the US government could acquire roughly 1 million BTC over five years. As ZyCrypto has previously reported, the Trump administration has stressed the need to leverage “budget-neutral ways” to acquire Bitcoin without burdening taxpayers.

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Filed under: Bitcoin - @ June 22, 2025 4:26 pm