Texas Approves State-Funded Bitcoin Reserve With SB21
Texas Governor Greg Abbott signed Senate Bill 21, establishing the Texas Strategic Bitcoin Reserve, a fund to hold Bitcoin as a long-term financial asset. The reserve operates independently from the state's general treasury and aims to enhance financial resilience and hedge against inflation. Only assets with a market capitalization over $500 billion, currently only Bitcoin, are eligible for inclusion. The fund will be managed by the Texas Comptroller of Public Accounts with guidance from an advisory committee of three crypto investment professionals. The reserve can grow through forks, airdrops, investment gains, or public donations, with a biannual public report on its holdings and performance. SB21 protects the reserve from being absorbed into the general revenue fund. Texas is the third state to approve a Bitcoin reserve law, following Arizona and New Hampshire, and is the first to commit public funds for Bitcoin holdings. Public companies are increasingly adopting Bitcoin as a treasury asset, with notable investments from Nakamoto Holdings and The Blockchain Group.
