Texas Governor Signs SB21 to Establish Third State Bitcoin Reserve
Texas Governor Greg Abbott has signed SB21, making Texas the third U.S. state—after Arizona and New Hampshire—to create a dedicated Bitcoin Reserve. Managed by State Comptroller Glenn Hegar and held outside the general fund, the reserve aims to safeguard state-held BTC from routine transfers to general revenue. Abbott also approved HB4488, which further isolates the Bitcoin Reserve from state treasury sweeps and guarantees its legal status even if no Bitcoin is acquired by next summer. This move underscores Texas’s commitment to cryptocurrency policy and could influence broader market confidence in Bitcoin adoption.
Bullish
Establishing a state-backed Bitcoin Reserve signals strong government support and regulatory clarity for BTC. By isolating the fund from the general treasury and securing its legal status, Texas reduces policy risk and boosts institutional confidence. Similar moves in Arizona and New Hampshire have been followed by increased local crypto activity and positive market sentiment. In both the short term and long term, this framework may encourage other states to adopt comparable policies, underpinning Bitcoin’s price stability and growth prospects.