Texas Signs SB21 to Create First State-Level Bitcoin Reserve
Texas Governor Greg Abbott on June 22 signed SB 21, authorizing the state auditor to establish a strategic Bitcoin reserve fund. Texas becomes the third U.S. state—after New Hampshire and Arizona—to hold a dedicated BTC reserve. The fund, managed outside the state treasury, may draw on legislative appropriations, special revenues, crypto fork and airdrop proceeds, investment yield and donations. The auditor will use strict investment criteria and cold wallets for security. SB 21 empowers annual Bitcoin purchases up to $500 million and creates a five-member advisory committee to report on risk and performance. Supporters view the Bitcoin reserve as a hedge against inflation, a diversification of public assets and a signal to attract digital-asset businesses. Critics warn of price volatility, cybersecurity risks and public fund exposure. This move marks another milestone in state-level crypto adoption, potentially boosting institutional Bitcoin demand and reinforcing market confidence.
Bullish
Establishing a state-level Bitcoin reserve directly increases long-term institutional demand for BTC. Similar precedents in New Hampshire and Arizona led to heightened market interest and positive price action. In the short term, announcements often trigger buy-the-rumor rallies as traders anticipate state purchases. Over the long run, this formal adoption reduces perceived regulatory risk and signals broader acceptance of Bitcoin as a public asset, supporting sustained bullish sentiment.