Texas Affirms Cryptocurrency Commitment: Establishment of the First State-Sponsored Bitcoin Reserves Fund in the U.S.
In a groundbreaking move, Texas has officially launched the Texas Strategic Bitcoin Reserve, making it the first state in the United States to dedicate public funds to cryptocurrency investment. Governor Greg Abbott signed Senate Bill 21 into law in June 2025, setting the stage for this innovative financial endeavour.
The Texas Strategic Bitcoin Reserve, overseen by the Texas Comptroller of Public Accounts, operates independently from the state's general treasury. It is governed by a well-defined legal and governance framework, ensuring transparency, security, and a focused investment strategy.
The reserve is administered by the Comptroller, with the guidance of a three-member advisory committee composed of crypto investment experts. This committee provides specialized oversight and advice on the reserve’s management. Public transparency is ensured through a biennial report published by the Comptroller, detailing the reserve’s holdings and performance.
The reserve holds Bitcoin as its sole digital asset, investing only in digital assets with a market capitalization exceeding $500 billion. This narrow market cap cutoff indicates careful and deliberate decision-making by the bill's creators, with nearly all other cryptocurrencies disqualified from investment.
Secure custody solutions compliant with state supervision standards are employed to mitigate risks associated with holding digital assets. The Bitcoin in the reserve will be stored using secure cold storage solutions.
SB 21 includes provisions that limit when and how Bitcoin assets can be liquidated. The Bitcoin assets can only be liquidated under certain specific circumstances: funding urgent state needs, covering administrative costs, actions explicitly authorized by the legislature, and depositing temporarily in the state treasury.
The reserve may accumulate Bitcoin through direct purchase, airdrops, forked assets, public or private donations, investment earnings, and staking rewards. Donors cannot impose restrictions on how their contributions are used in the reserve.
The Texas proposal could serve as a model for other states, particularly those with energy abundance and aspirations to become tech or crypto hubs. The inflation factor and central bank monetary policies continuing to be in a quandary might encourage other states to reconsider digital assets, following the lead of big companies like MicroStrategy, Tesla, and Block Inc. that have already held Bitcoin as part of their treasuries.
Texas has established a pioneering example of state-level institutional Bitcoin investment, with the Texas Strategic Bitcoin Reserve set to play a significant role in shaping the future of state financial strategies.
[1] Senate Bill 21, Texas Legislature. (2025). Retrieved from https://www.legis.texas.gov/billlookup/Text.aspx?LegSess=88R&Bill=SB21 [2] Texas Comptroller of Public Accounts. (2025). Texas Strategic Bitcoin Reserve. Retrieved from https://comptroller.texas.gov/bsb/strategic-bitcoin-reserve/ [3] Office of the Governor, State of Texas. (2025). Governor Abbott Signs Senate Bill 21, Establishing the Texas Strategic Bitcoin Reserve. Retrieved from https://gov.texas.gov/news/post/governor-abbott-signs-senate-bill-21-establishing-the-texas-strategic-bitcoin-reserve
- Texas has established the Texas Strategic Bitcoin Reserve, the first state to invest public funds in cryptocurrency, overseen by the Texas Comptroller of Public Accounts.
- The Texas Strategic Bitcoin Reserve is governed by a legal and governance framework that prioritizes transparency, security, and focused investment strategies.
- The reserve holds Bitcoin as its sole digital asset, focusing on investment in digital assets with a market cap of over $500 billion.
- Secure custody solutions ensure the security of the reserve's Bitcoin assets, using compliant cold storage solutions.
- SB 21 outlines specific circumstances under which Bitcoin can be liquidated, such as funding urgent state needs or covering administrative costs.
- The reserve acquires Bitcoin through various means, including direct purchase, airdrops, forked assets, donations, earnings, and staking rewards.
- The Texas Strategic Bitcoin Reserve could serve as a model for other states, particularly those with energy surplus and aspirations to become tech or crypto hubs, following the lead of companies like MicroStrategy, Tesla, and Block Inc. that hold Bitcoin in their treasuries.
