Texas Enacts Legal Protections for Strategic Bitcoin Reserve as SB21 Awaits Approval
Texas Governor Greg Abbott has signed House Bill 4488 (HB 4488) to shield designated state funds—including a proposed “Texas Strategic Bitcoin Reserve”—from being swept into the general revenue budget. The law also secures other strategic accounts, such as the Texas Advanced Nuclear Development Fund and the Gulf Coast Conservation Account, by establishing them as independent entities inside or outside the state treasury. Meanwhile, Senate Bill 21 (SB 21) remains under consideration; if approved, it would authorize Texas to invest directly in cryptocurrencies with market capitalizations above $500 billion (currently only Bitcoin), providing explicit legal backing for the Bitcoin reserve. These measures signal growing state-level endorsement of Bitcoin, potentially boosting institutional and retail trader interest once SB 21 clears the legislature.
Bullish
By enshrining protections for a potential state-managed Bitcoin reserve and paving the way for direct crypto investments via SB21, Texas is delivering a clear institutional endorsement of Bitcoin. In the short term, traders may respond positively to the prospect of increased state-level demand and legal clarity. Over the long term, these measures could set a precedent for other jurisdictions, enhancing Bitcoin’s credibility and driving further institutional inflows, supporting sustained price appreciation.