Texas Becomes First U.S. State to Establish Public Bitcoin Reserve

Texas has made history as the first U.S. state to create a publicly funded bitcoin reserve, signaling a bold shift toward digital asset adoption. Governor Greg Abbott recently signed Senate Bill 21, mandating the establishment of a state-managed bitcoin reserve independent from the state treasury. This move puts Texas ahead of other states like Arizona and New Hampshire, which passed similar laws but did not allocate funding.

The Texas government is dedicating $10 million to purchase bitcoin (BTC), a small fraction—just 0.0004%—of the state’s budget. However, this symbolic investment sends a strong message to the crypto industry. “It shows Texas recognizes that the future of finance is digital,” said Lee Bratcher, president of the Texas Blockchain Council. The reserve is expected to attract further blockchain innovation and investment into the state.

This initiative arrives shortly after the Trump administration unveiled plans for a national crypto reserve, intended to be budget-neutral through asset seizures or crypto bond issuances. Unlike that federal approach, Texas is taking direct action by investing taxpayer funds into bitcoin.

Governor Abbott also signed HB 4488, a companion bill that protects the bitcoin reserve from being absorbed into the general fund through routine financial sweeps, reinforcing its long-term purpose as a sovereign financial instrument.

With this legislation, Texas is redefining the role of digital assets at the state level—no longer as speculative tools but as long-term stores of value. The move is likely to inspire other states to follow suit, further legitimizing bitcoin and blockchain technology in the realm of public finance. As regulatory clarity grows, Texas positions itself at the forefront of the crypto revolution in the United States.