- Texas has signed a law to create a strategic Bitcoin reserve fund.
- Only assets with a $500 billion market cap, like Bitcoin, are eligible.
- The state joins Arizona and New Hampshire as early adopters of Bitcoin reserves.
Saddle up.
With a stroke of Governor Greg Abbott’s pen, Texas just became the third state in the nation to make cryptocurrency part of its official reserves.
The newly signed legislation, dubbed SB21, authorises the creation of the Texas Strategic Bitcoin Reserve.
It’s a state-managed fund that will allow Texas to purchase and hold Bitcoin outside of its regular treasury system. The reserve is designed to enhance the state’s financial resilience and provide a hedge against inflation, according to the bill text.
Only assets with a market capitalisation above $500 billion qualify for purchase, meaning Bitcoin is currently the sole candidate. The fund can also grow through forks, airdrops, investment gains, and crypto donations from the public.
Administration of the fund falls to the state comptroller, who will oversee Bitcoin custody and work with an advisory committee that includes three crypto investment experts.
A public report will be issued every two years detailing the reserve’s activity and value.
The law’s passage follows Governor Abbott’s recent approval of House Bill 4488, which protects the Bitcoin reserve and other special funds from being absorbed into the state’s general revenue pool.
That financial firewall gives Texas room to manage its Bitcoin holdings independently from budget politics.
Joining the party
Texas now joins New Hampshire and Arizona in enacting Bitcoin reserve laws.
But unlike Arizona’s version, which doesn’t commit public money, or New Hampshire’s, which permits investment through the state treasury, Texas has carved out a path for direct and segregated Bitcoin holdings.
The bill passed with bipartisan support and fits neatly into Governor Abbott’s broader pro-crypto stance.
“Texas is already the home of crypto mining,” he posted last year. “This session, Texas should become the crypto capital.”
Crypto market movers
- Bitcoin has lost 1% in value over the past 24 hours and is trading at $102,650.
- Ethereum has lost 6.6% in the same period to $2,275.
What we’re reading
- Joe Lubin just became Ethereum’s top champion. Just don’t call him ‘Mr. Saylor of ETH’ ― DL News
- ‘Public Good’: Wyoming Plots August Debut for WYST Stablecoin ― Decrypt
- CLARITY Act Will Miss Trump’s August Deadline: Senate Banking Chairman — Unchained
- French gang charged after crypto trader’s father abducted in petrol-soaked New Year’s Eve ransom attack ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com
