Texas Enacts Strategic Bitcoin Reserve Law Under SB21
Texas Governor Greg Abbott has signed Senate Bill 21 (SB21), the Texas Strategic Bitcoin Reserve Act, authorizing the state comptroller to hold Bitcoin as a reserve asset via an external fund. To qualify, assets must have maintained a 24-month average market cap of at least $500 billion—currently only Bitcoin (BTC). The reserve aims to hedge against inflation and economic volatility, bolster state financial infrastructure, and signal institutional confidence in digital currencies. A five-member advisory committee, including three crypto experts and the comptroller, will guide management. Approved by wide margins in both legislative chambers, SB21 takes effect on September 1, 2025. Companion bill HB 4488 protects the fund from periodic treasury sweeps and secures its legal status even if no Bitcoin is purchased by summer 2025.
Bullish
The establishment of a state-backed Bitcoin reserve under SB21 signals strong institutional endorsement and potential future demand for BTC. By integrating Bitcoin into public finances, Texas sets a precedent likely to encourage similar moves by other states. In the short term, this announcement may boost market sentiment and price volatility positively. Over the long term, state adoption can enhance Bitcoin’s legitimacy and stability, supporting sustained bullish momentum.