Governor Abbott Signs Senate Bill 21 Into Law
Texas has officially become the first U.S. state to fund and hold a Bitcoin reserve, marking a historic moment in the adoption of digital assets by public institutions. Over the weekend, Governor Greg Abbott signed Senate Bill 21, which authorizes the creation of a $10 million state-funded Bitcoin reserve, setting Texas apart from other crypto-curious states like Arizona and New Hampshire.
This is the first instance of a U.S. state directly allocating public funds to purchase and hold bitcoin.
$10 Million Purchase Signals Institutional Support
The state will use $10 million from its budget to acquire bitcoin, representing a small portion — just 0.0004% — of Texas’s overall budget. However, industry leaders believe the move carries an outsized symbolic and strategic impact.
“This sends a clear message to investors that Texas is serious about embracing the digital future,” said Lee Bratcher, president of the Texas Blockchain Council.
In contrast, Arizona and New Hampshire passed legislation to allow for similar reserves, but failed to allocate funding, making Texas the first to fully implement a funded digital asset reserve.
HB 4488: Safeguarding the Reserve
Alongside SB 21, Abbott also signed House Bill 4488, which ensures that Bitcoin held in reserve cannot be redirected into the state’s general revenue through typical budget sweeps.
This legal separation strengthens Texas’ commitment to treating Bitcoin as a long-term strategic reserve asset rather than a short-term financial tool.
The reserve will be managed independently of the state treasury, with operational guidelines expected to be released in the coming months.
A New Era in State-Level Crypto Policy
This move by Texas reflects a broader shift in how governments may approach crypto assets — not just as volatile instruments, but as sovereign financial assets.
The timing also follows national-level policy interest, including the Trump administration’s push for a U.S. crypto reserve, although that initiative is designed to be budget-neutral, relying on seizures and crypto-backed bonds rather than direct allocation.
Texas is now positioning itself as a national leader in public crypto finance, embracing Bitcoin as a long-term value asset.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.