Texas Launches Strategic Bitcoin Reserve with Legal Protections

Texas has officially launched its state-managed Bitcoin fund, marking a significant milestone in public crypto investment. Governor Greg Abbott signed Senate Bill 21 into law on Friday, establishing the Texas Strategic Bitcoin Reserve. This move positions Texas as the first U.S. state to commit public funds to Bitcoin with long-term legal protections, following similar crypto policy initiatives by New Hampshire and Arizona.

The Strategic Bitcoin Reserve aims to strengthen Texas’ financial resilience, serving as a hedge against inflation and economic volatility. Under the law, the state comptroller is empowered to buy, sell, hold, and manage Bitcoin and other digital assets. However, only assets with an average market capitalization of at least $500 billion over the past 24 months qualify—meaning Bitcoin is currently the only eligible asset.

Assets may enter the reserve through direct purchases, forks, airdrops, or donations, offering flexibility in accumulation methods. Security measures will meet institutional standards, requiring third-party custodians or liquidity providers to safeguard the assets. An advisory committee will offer oversight, while the comptroller retains operational authority.

To ensure transparency, the reserve will release performance and status reports twice a year. Crucially, the accompanying House Bill 4488 exempts the Bitcoin fund from the standard legislative sunset process, protecting it from future dissolution or fund redirection.

Unlike Arizona, which focuses on seized crypto, and New Hampshire, which holds digital assets in its treasury without structural protections, Texas’ approach is more robust and proactive. With this law, Texas sets a precedent for integrating Bitcoin into state financial policy while ensuring transparency, compliance, and long-term viability.

This development comes as Bitcoin trades above $101,000, rebounding from recent geopolitical tensions and reinforcing its perception as a digital safe-haven asset.