Texas Governor Signs Bill to Include Bitcoin in State Reserves

Highlights:

• Texas approves Bitcoin Reserve, becoming the third state after Arizona and New Hampshire.
• New law sets rules for managing Bitcoin fund outside the state treasury system.
• Texas also passed House Bill 4488 to safeguard the state’s cryptocurrency assets.

On June 21, Texas Governor Greg Abbott signed Senate Bill 21 (SB21) into law. This legislation authorizes the establishment of the Texas Strategic Bitcoin Reserve. The reserve will hold Bitcoin as part of the state’s long-term asset portfolio. Gov. Abbott received SB 21 on June 1 and had until June 22 to sign or veto it. Under the Texas Constitution, any bill left unsigned by that date becomes law automatically. 

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Since SB 21 is now signed, Texas has become the third state to approve a Strategic Bitcoin Reserve, after Arizona and New Hampshire. Under SB 21, the Texas Comptroller of Public Accounts will manage a fund kept outside the state treasury. It will receive money from the state budget, special fees, investment gains, and crypto donations. The law sets clear rules for how the comptroller can buy, hold, and sell digital assets. 

🇺🇸 JUST IN: Texas Governor Greg Abbott signs Bitcoin Reserve bill SB 21 into law.

Texas is now the third state with a Bitcoin Reserve. pic.twitter.com/2JJOc7anf4

— Bitcoin Laws (@Bitcoin_Laws) June 21, 2025

Supporters believe it will protect against inflation, strengthen Texas’s finances, and keep the state ahead in using digital assets. The law allows the fund to invest only in cryptocurrencies with an average market cap of at least $500 billion over the past 12 months. This rule aims to keep the fund focused on large and stablecoins, mainly Bitcoin at this time.

Texas Moves to Protect Crypto and Special State Funds

SB21 comes after Governor Abbott signed House Bill 4488 to protect the state’s crypto holdings. Without this law, Texas might have had to sell them in 2025. Now, these assets are safe and won’t be treated like normal state funds. This shows Texas plans to use crypto in its official finances.

The law also protects other funds besides the BTC Reserve. These include the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account. Each fund will be set up either inside the state treasury or outside it, depending on the rules that created it.

#Texas governor signs bill to protect state #Bitcoin reserve as a permanent fund if established.
The proposed Bitcoin reserve bill, SB21, could automatically become law if Governor Abbott takes no action by June 22. Thats 2 days away.

Texas Governor Greg Abbott has passed House… pic.twitter.com/jOdVhBKq1M

— MartyParty (@martypartymusic) June 21, 2025

Bitcoin Confidence Grows as Texas Pushes Ahead

In February, State Senator Charles Schwertner said the state should have the option to look at top assets. He explained that just like Texas can buy land or gold, it should also consider Bitcoin, which has performed best over the last 10 years.

This view echoes growing confidence in Bitcoin’s long-term value, also seen in the recent statement by Strategy founder Michael Saylor. In a Saturday post on X, Saylor boldly projected that BTC could reach a price of $21 million within the next 21 years. His new forecast is a major jump from his earlier prediction at the 2024 Bitcoin conference in Nashville, where he expected the price to reach $13 million by 2045.

$21 million in 21 years

— Michael Saylor (@saylor) June 21, 2025

Texas is moving forward with a BTC reserve while some U.S. states are stepping back. In May, Florida dropped its crypto bill, joining Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma. At the federal level, President Donald Trump signed an executive order to create a strategic Bitcoin reserve.

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