Key dealers
- Texas has established a Bitcoin reserve as part of its financial strategy.
- The reserve requires that Bitcoin has maintained an average market value of $ 500 billion for 24 months.
Texas Governor Greg Abbott has signed Senate Bill 21 (SB 21) to the law and paved the way for the state to establish a Bitcoin reserve as part of its financial strategy.
With this trait Texas becomes the third state in the United States to adopt Bitcoin as a strategic asset and join New Hampshire and ArizonaThe first two states passing 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 Treasury that the state controller will handle.
The reserve is designed to allow the state to invest in bitcoin and other qualified crypto assets such as a hedging against inflation, economic volatility and to increase the total economic resilience.
However, according to the law, assets must maintain an average market capitalization of at least $ 500 billion over the past 24 months. From now on, only bitcoin meets this criterion. Bitcoin is currently sitting over $ 2 trillion in market valuation, per coytecko data.
The second largest crypto supply, Ethereum, currently has a market value of approximately $ 277 billion. Although it does not yet meet the 24-month average of $ 500 billion required by SB 21, it can qualify for inclusion in the reserve if its market value rises over time.
The legislation also allows the formation of an advisory committee for five members to guide the reserve’s management, including checks and three crypto investment experts. The controller can be agreed with qualified guardians for secure storage and liquidity suppliers with at least five years of digital asset trading experience.
Before he was signed in law, the bill Texas Senate passed with 25 votes in favor and 5 against, while the Chamber approved it with 9 votes in favor and 4 opposed. The law is expected to enter into force on September 1, 2025.
Texas Governor already expressed support for a bill before he approved it. Abbott shared an article about Texas move to establish a Bitcoin reserve of X on May 22, which signaled that he would eventually give it a nod.
Governor Abbott also signed HB 4488, a companion that protects the Bitcoin reserve from periodic Treasury Fund wipes and confirms its legal position even if no Bitcoin is purchased in the summer of 2025.
Texas moves to establish strategic Bitcoin Reserve: a new era in state finance.
via @Techstoryin https://t.co/e5utsszdfi
– Greg Abbott (@gababott_tx) May 23, 2025