Texas Becomes First State to Back Bitcoin With Treasury Funds

Texas has made a clear move into Bitcoin by putting public money into it. Governor Greg Abbott signed Senate Bill 21 (SB21), allowing the state to create its own Bitcoin reserve that will be managed separately from other state funds. Unlike Arizona and New Hampshire, which also passed reserve laws, Texas is the first to actually commit funds and build a separate system around Bitcoin.

Good to know

• Texas is the first US state to use public funds for a standalone Bitcoin reserve.
• Only assets over $500 billion in market cap qualify, currently met only by Bitcoin.
• Reports on the fund’s performance will be made public every two years.

The Texas Strategic Bitcoin Reserve will be overseen by the Comptroller of Public Accounts and guided by a small group of crypto investment experts. According to the bill, the reserve is meant to help the state build financial strength and act as a long-term inflation hedge.

The law also sets clear limits on what the fund can hold. Right now, Bitcoin is the only asset that meets the $500 billion minimum market cap rule. The reserve is allowed to grow in multiple ways, not just through direct purchases. It can also benefit from Bitcoin forks, airdrops, public donations, or investment returns over time.

To keep the fund separate from the rest of the state’s finances, Texas also passed House Bill 4488. That bill prevents the Bitcoin reserve from being moved into the general revenue fund, even if the state’s budget priorities change.

The law adds another example of how Texas continues to align itself with Bitcoin-related projects. It follows earlier moves to attract mining companies and support blockchain innovation. With this new reserve in place, Texas is positioning itself as a Bitcoin-friendly state not just in words, but in actual capital deployment.

A detailed public report will be issued every two years to show the reserve’s performance and holdings. This level of transparency is meant to help the public track how the fund is managed and how much Bitcoin Texas ends up holding.