Texas has handed Senate Invoice 21, a measure establishing the Texas Strategic Bitcoin Reserve. This makes Texas the third U.S. state to undertake Bitcoin as a part of its state funding technique, following Arizona and New Hampshire. The invoice, formally titled the “Texas Strategic Bitcoin Reserve and Funding Act”, has cleared each legislative chambers and now heads to Governor Greg Abbott’s desk for remaining approval.
SB21 authorizes the creation of the Texas Strategic Bitcoin Reserve, a particular fund outdoors the state treasury, which permits Texas to speculate straight in Bitcoin and different accepted cryptocurrencies, in accordance with the laws. The measure offers the State Treasurer full authority over the reserve’s administration, together with buying, managing, staking, and probably liquidating digital property.
“The institution of a strategic bitcoin reserve serves the general public function of offering enhanced monetary safety to residents of this state,” declares the laws.
The State Treasurer will handle the fund beneath strict circumstances:
- Solely cryptocurrencies with a 12-month common market cap of at the very least $500 billion could be bought.
- Property should be saved utilizing “chilly storage” know-how to forestall unauthorized entry.
- Third-party companions, together with certified custodians and liquidity suppliers, could also be contracted for operations.
- Using staking, and derivatives is allowed if it advantages the reserve.
Funds can come from legislative appropriations, donations from Texas residents, and returns on investments. Whereas the reserve operates independently, the State Treasurer can quickly liquidate it for state money administration beneath restricted circumstances.
Governor Abbott has not but indicated whether or not he’ll signal the invoice, however his previous assist of Bitcoin suggests a good end result is probably going.
“Texas is getting concerned early on on this course of as a result of we see the way forward for what bitcoin and blockchain means to the whole world,” mentioned Governor Abbott in an interview. “Texas needs to be the centerpiece of that. So we’re selling it, we’re advancing it.”
When New Hampshire handed their invoice on Could 6, 2025, CEO and Co-Founding father of Satoshi Motion Dennis Porter remarked that it was just the start and now we’re seeing that imaginative and prescient unfold.
“Satoshi Motion drafted the mannequin, New Hampshire engraved it into regulation, and now each treasurer nationwide can observe that roadmap,” acknowledged Dennis Porter on X. “HB 302 proves you’ll be able to shield taxpayer cash, diversify reserves, and future-proof state treasuries—all whereas embracing probably the most safe financial community on Earth. New Hampshire didn’t simply move a invoice; it sparked a motion.”