Texas Governor Signs Bill to Protect State Bitcoin Reserves

Highlights:

• Texas enacts law shielding Bitcoin and crypto reserves from being treated as general funds.
• Senate Bill 21 awaits the Governor’s decision, which could authorize direct state investment in Bitcoin.
• Texas joins Arizona and New Hampshire in advancing state-level Bitcoin reserve strategies.

Texas Governor Greg Abbott has signed a new law (House Bill 4488) to protect the state’s Bitcoin and other crypto holdings. Without this law, the state might have been forced to sell them in 2025. Now, these crypto assets are safe and won’t be treated like regular government funds. This shows Texas is taking cryptocurrency seriously and plans to use it in its official finances.

#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

Texas Protects Key Funds as Bitcoin Investment Decision Awaits

The legislation also safeguards several other funds alongside the Texas Strategic Bitcoin Reserve. These include the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account. Depending on the specific laws that establish them, these funds will be set up or re-established as distinct entities, either within the state treasury or independently outside it.

Greg Abbott has not yet decided on Senate Bill 21 (SB21), which would authorize the state to invest in Bitcoin and other cryptocurrencies with a market capitalization of at least $500 billion. Currently, only Bitcoin meets this threshold. On June 1, the legislature sent SB21 to Governor Abbott, who has until June 22 to sign or reject it. If he does nothing, the bill will automatically become law.

If passed, SB21 would be a big step for Texas in using crypto, putting the state in line with other institutions that see Bitcoin as a valuable long-term asset.

New Hampshire and Arizona Approved Bitcoin Reserve Laws

New Hampshire, Arizona, and Texas are among the first states to approve Bitcoin Reserves. Other states proposed similar bills, but most didn’t move forward because lawmakers were unsure about Bitcoin’s price swings and long-term value.

Arizona’s Senate narrowly approved HB 2324 with a 16-14 vote. This bill aims to support the growth of the state’s cryptocurrency ecosystem by designating abandoned digital assets as unclaimed property. The legislation now returns to the House for its final approval. The House also passed SB1025, a bill that allows the state to invest seized funds in Bitcoin.

Governor Katie stated:

The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currencу. 

Michigan introduced four new pro-crypto bills. One would let the state’s retirement fund hold Bitcoin. Another aims to ban CBDCs and strengthen financial privacy. The other two support Bitcoin mining, offering benefits for miners using abandoned oil and gas wells. New Hampshire approved HB 302, enabling the state treasurer to purchase Bitcoin and other digital assets valued at more than $500 billion. To keep crypto as a small part of the portfolio, the state set a 5% cap on these assets.