Texas has become the first U.S. state to officially establish a Bitcoin reserve backed by public funds. This milestone followed the signing of Senate Bill 21 (SB 21) by Governor Greg Abbott on June 20, 2025.

While Arizona and New Hampshire have previously created state-level crypto reserves, Texas is the first to commit government capital to such an initiative, reflecting a strategic move toward digital sovereignty and blockchain innovation.

The Bitcoin reserve will operate independently of the state treasury and fall under the oversight of the Texas Comptroller of Public Accounts. Strategic decisions will be made in consultation with a three-member advisory committee composed of cryptocurrency investment experts.

Only cryptocurrencies with a 12-month average market capitalization exceeding $500 billion USD are eligible for inclusion in the fund. Currently, this criterion limits the reserve to Bitcoin and, potentially in the future, Ethereum.

The legislation permits the fund to acquire assets through direct purchases, forks, airdrops, crypto donations, and investment returns. A public report detailing the fund's holdings and activities will be released every two years.

Additionally, House Bill 4488 was enacted to ensure that the reserve's funds cannot be absorbed into the state’s general fund, even if no digital assets are acquired by mid-2026.

This development aligns with a broader national trend. It follows a March 2025 executive order signed by former President Donald Trump establishing a federal strategic Bitcoin reserve and encouraging states to implement their own digital asset strategies.

States such as Michigan, Ohio, and Massachusetts are currently exploring similar legislation, while efforts in Florida, Oklahoma, and Georgia have stalled or been repealed.

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