Texas Protects Bitcoin Reserves, SB21 Decision by June 22 ✅
Texas shields off‑treasury Bitcoin reserves and awaits SB21 outcome by June 22 on state crypto investments.
- HB 4488 secures off‑treasury Bitcoin from general revenue use.
- SB21 could let Texas hold crypto reserves if signed by June 22.
- State-managed fund includes oversight and market‑cap limits.
New Safeguards for Bitcoin Reserves
Texas Governor Greg Abbott has signed HB 4488, a new law that protects Bitcoin reserves managed outside the state treasury. This legislation classifies these assets as special-purpose funds, shielding them from automatic dissolution in 2025. The law ensures that Bitcoin holdings remain intact and legally recognized under state control.
SB21: A Pivotal Decision Nears
All eyes are now on Senate Bill 21 (SB21), which proposes the creation of the “Texas Strategic Bitcoin Reserve.” The bill authorizes the state’s Comptroller to invest in Bitcoin and, in the future, any cryptocurrency that maintains an average market capitalization of $500 billion or more over 12 months.
If not vetoed or signed by June 22, the bill will automatically become law. SB21 includes a number of safeguards:
- Custody must be held in cold storage by qualified third-party custodians.
- The Comptroller can use staking, derivatives, and yield-generation strategies.
- A formal advisory committee and biennial public reporting are required.
- Reserve assets cannot be liquidated without written permission from the governor and legislative leaders.
Why This Move Matters
Texas could become one of the first U.S. states to legally manage crypto assets as part of its strategic reserves. With HB 4488 securing current holdings and SB21 setting a comprehensive framework for future acquisitions, the Lone Star State is signaling strong confidence in Bitcoin’s long-term role in public finance.
However, critics point out risks including crypto market volatility and the challenge of managing speculative assets with taxpayer funds. Proponents argue it positions Texas as a crypto-forward state ready for digital finance evolution.
Key Takeaways
| Law/Bill | Highlights |
|---|---|
| HB 4488 | Protects existing Bitcoin held off-treasury |
| SB21 | Proposes Texas-managed Bitcoin reserve with strict regulations |
| Market Cap Limit | Only assets with $500B+ avg cap eligible (currently Bitcoin only) |
| Controls | Cold storage, advisory board, limited liquidation, audit rules |
What’s Next
Governor Abbott has until June 22 to act on SB21. If no action is taken, it will still pass into law. Should that happen, Texas will officially join a short list of global jurisdictions actively holding and managing Bitcoin as a sovereign reserve asset.
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