Texas Sets Up Bitcoin Reserves, Leading as First State to Use Public Finances in Cryptocurrency Investments
In a groundbreaking move, Texas has established the Texas Strategic Bitcoin Reserve under Senate Bill 21 (SB 21), signed into law by Governor Greg Abbott in June 2025. This innovative fund, designed to hold Bitcoin as part of Texas's long-term financial assets, operates independently from the state's general treasury system.
The reserve is managed by the Texas Comptroller of Public Accounts, with advisory guidance from a three-member advisory panel composed of crypto investment experts. The fund can invest in cryptocurrencies that meet a specific threshold, currently only Bitcoin, with an average market capitalization of at least $500 billion over the past 12 to 24 months.
The Texas Strategic Bitcoin Reserve can grow through various means, including direct Bitcoin purchases, forks, airdrops, investment gains, and public crypto donations. SB 21 requires a biennial report detailing the reserve's holdings and performance, ensuring transparency and accountability. The reserve is protected from being absorbed into the general revenue fund, securing it from budgetary shifts and maintaining its independence within Texas's financial infrastructure.
The goal of the Texas Strategic Bitcoin Reserve is multifaceted. It aims to strengthen Texas's financial resilience by diversifying its reserves through strategic inclusion of Bitcoin. The reserve serves as a hedge against inflation and economic volatility, leveraging Bitcoin's characteristics as a digital asset. Texas's move signals its commitment to innovation, financial diversification, and leadership in cryptocurrency adoption among U.S. states, which may help attract more crypto-related businesses and investments to the state.
This strategic fiscal management approach integrates cryptocurrency into the state's economic framework, establishing a forward-thinking strategy that could set a precedent for other states. The efforts by Texas and Ohio could pave the way for broader adoption and regulatory frameworks around cryptocurrency across the U.S.
In Ohio, House Bill 116, sponsored by Republican Representative Steve Demetriou, seeks to protect the rights of digital asset holders. The Ohio Bitcoin Rights Bill has now advanced to the full Ohio House of Representatives for debate and a vote.
It is important to note that this article is provided for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
References: [1] Texas Comptroller of Public Accounts. (2025). Texas Strategic Bitcoin Reserve. Retrieved from https://comptroller.texas.gov/bsb/bsb_sb21/ [2] Texas Senate Bill 21. (2025). Retrieved from https://texaslegislature.gov/BillLookup/Text/87R/SB21 [3] Abbott, G. (2025, June 1). Governor Abbott Signs Senate Bill 21 into Law. Retrieved from https://gov.texas.gov/news/post/governor-abbott-signs-senate-bill-21-into-law [4] Demetriou, S. (2025, April 1). House Bill 116: Protecting the Rights of Digital Asset Holders. Retrieved from https://demetriouforohio.com/house-bill-116-protecting-the-rights-of-digital-asset-holders/
The Texas Strategic Bitcoin Reserve, through investments in cryptocurrencies like Bitcoin, can potentially expand through various means such as airdrops and investment gains. The Texas Strategic Bitcoin Reserve, established to strengthen financial resilience and serve as a hedge against inflation, also represents the state's commitment to technology and innovation in cryptocurrency.
