Texas Moves Forward with Bitcoin Reserve, Becoming Third U.S. State to Back Crypto with Legislation

Texas has officially entered the next phase of crypto adoption.

On Saturday, Governor Greg Abbott signed Senate Bill 21 into law, marking the state’s commitment to creating a publicly funded strategic Bitcoin reserve.

With this move, Texas joins Arizona and New Hampshire in enshrining digital asset holdings into state legislation though Texas distinguishes itself by establishing a stand-alone reserve, independent of the traditional state treasury.

The fund will be overseen by the Texas Comptroller of Public Accounts, Glenn Hegar, and is designed to be managed using established investment protocols. Supporters see the reserve as a forward-looking step toward diversifying state assets and safeguarding long-term value.

“We invest in land and gold, why not Bitcoin?” State Senator Charles Schwertner, the bill’s author, argued earlier this year. The legislation positions Bitcoin as a viable state-held asset, reflecting its performance over the past decade and the growing legitimacy it holds within broader financial markets.

Alongside SB 21, Governor Abbott also signed House Bill 4488, which insulates the Bitcoin fund from routine “fund-sweeps” into general revenue, a mechanism often used to reallocate unspent state funds. Crucially, the bill guarantees the legal existence of the reserve, even if no Bitcoin has been purchased by the end of the fiscal year, signaling a long-term policy commitment.

Lee Bratcher, President of the Texas Blockchain Council, has previously expressed optimism about the initiative. He expects Texas to allocate tens of millions of dollars toward the fund, a small figure relative to the state’s overall budget, but a meaningful gesture within the crypto landscape.

“The Comptroller’s office will manage these investments with professional diligence,” Bratcher said, noting that decisions on when and how much Bitcoin to purchase would rest with seasoned financial officials, not politicians.

Interestingly, neither SB 21 nor HB 4488 were included in the governor’s press release listing 16 “critical” bills passed that day, which featured over 300 new pieces of legislation. Still, the implications of Texas’s quiet move into crypto reserves could echo far beyond its borders.

With this step, Texas reaffirms its role as one of the most blockchain-forward states in the U.S., not just embracing the crypto economy, but investing in it—literally.