Texas Strategic Bitcoin Reserve Becomes Law
Texas Governor Greg Abbott signed SB 21, establishing the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury and making the law effective immediately. The measure created a state-level legal structure specifically designed to hold Bitcoin and other qualifying high-market-cap cryptocurrencies.
On June 20, 2025, Texas Governor Greg Abbott signed Senate Bill 21, the Texas Strategic Bitcoin Reserve and Investment Act, and the law took effect immediately. The measure established the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury, administered by the state comptroller. It authorized the legislature to appropriate money to the reserve and created an advisory committee to assist with its management.
Despite its Bitcoin-specific name, the statute was written to permit investment in Bitcoin and any other cryptocurrency that met a very high market-capitalization requirement over a defined period. In practice, Bitcoin was the central asset contemplated by the legislation. The law also authorized administrative arrangements such as third-party management, audits and limited use of derivatives, while preventing ordinary transfers of reserve assets into the state treasury without legislative authorization.
Texas joined a growing 2025 wave of U.S. state-level Bitcoin reserve initiatives, but the law represented its own jurisdictional and institutional step. Rather than merely endorsing Bitcoin or studying a reserve, Texas created a durable legal entity through which state funds could be allocated to qualifying digital assets. The reserve structure added another layer to Bitcoin’s movement from a privately held asset into formal public-sector treasury policy in the United States.