Texas BTC Reserve Bill Signed by Gov. Abbott
Texas Governor Abbott signs SB 21 to create a strategic Bitcoin reserve, with protections under HB 4488.
- Gov. Abbott enacts SB 21, establishing a Bitcoin reserve managed by the state.
- Assets must have ≥ $500 billion market cap over 24 months—only Bitcoin qualifies.
- HB 4488 protects the reserve from being swept into general funds.
On June 20, 2025, Texas Governor Greg Abbott signed Senate Bill 21—also known as the Texas Strategic Bitcoin Reserve Act—into law. This legislation authorizes the state to establish a Bitcoin reserve outside of its general treasury. The reserve will be managed by the state comptroller and guided by a five-member crypto advisory committee.
To be eligible for inclusion in this reserve, any digital asset must have maintained an average market capitalization of at least $500 billion over a 24-month period. Currently, only Bitcoin meets this strict criterion. The reserve is intended as a long-term financial strategy to hedge against inflation and provide stability during economic uncertainty.
The advisory committee will include the state comptroller and four members appointed based on expertise in digital assets. The law allows the comptroller to contract with qualified custodians and liquidity providers to manage the Bitcoin holdings.
Legal Protections via HB 4488
Complementing SB 21, Governor Abbott also signed House Bill 4488. This bill ensures that the funds within the Bitcoin reserve cannot be transferred to the state’s general revenue or eliminated without direct legislative action. HB 4488 provides an essential legal shield, preserving the reserve’s independence and making sure it serves its intended purpose.
The protection extends not just to the Bitcoin reserve but to all dedicated funds created by the legislature. It blocks automatic fund sweeps and restricts liquidation of crypto assets held by the state.
Why This Matters
Texas now joins a small but growing group of U.S. states treating Bitcoin as a strategic financial asset. With this bold move, Texas is strengthening its reputation as a crypto-friendly state, potentially attracting more blockchain innovation and investment. While practical implementation details remain—like how and when the state will purchase Bitcoin—this legislation lays a solid foundation for crypto integration in public finance.
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