Texas Governor Greg Abbott has signed Senate Bill 21 (SB 21). The state can build a Bitcoin reserve as part of its money plan. Texas is now the third state in the U.S. to see Bitcoin as a strategic asset, after New Hampshire and Arizona.
Senate Bill 21, called “The Texas Strategic Bitcoin Reserve Act,” was written by Senator Charles Schwertner. The law lets the state comptroller set up a Bitcoin reserve to invest in Bitcoin and other approved cryptocurrencies. This plan is meant to protect against inflation and economic problems while making the state’s finances stronger.
To qualify for the reserve, assets need to have an average market cap of at least $500 billion over the last 24 months. Right now, only Bitcoin meets this requirement, with a market value of over $2 trillion, based on CoinGecko. Ethereum, the second-largest cryptocurrency, has a market cap of about $277 billion. It doesn’t meet the SB 21 criteria right now, but it could qualify if its market cap goes up.
The law creates a five-member advisory committee to manage the reserve. This committee will include the comptroller and three experts in cryptocurrency investment. The comptroller can hire qualified custodians for safe storage and liquidity providers who have at least five years of experience in digital asset trading.
Before it became law, SB 21 had strong backing in the Texas Senate, where it passed with 25 votes for and 5 against, and in the House with 9 votes for and 4 opposed. The law will start on September 1, 2025.
Governor Abbott also signed House Bill 4488, which protects the Bitcoin reserve from being automatically abolished and keeps its legal status, even if no Bitcoin is bought by the summer of 2025. Abbott had earlier shown his support for the bill, emphasizing Texas’s dedication to adopting cryptocurrency.
