Texas Governor Greg Abbott has officially signed House Bill 4488 (HB4488) into law, creating a new legal framework to protect certain state funds—including any Bitcoin reserve created outside the state treasury. This move could position Texas as a national leader in state-level digital asset management.
HB4488 Protects Bitcoin Reserves and Strategic Funds
HB4488 ensures that specific state-controlled funds cannot be absorbed into the general revenue pool, granting them independent legal and financial status. This protection applies to current and future funds, including a potential Texas Strategic Bitcoin Reserve.
Notably, the law allows digital asset reserves like Bitcoin to be established outside the state treasury. This provides additional flexibility for how the state manages and safeguards its digital holdings, while reinforcing its commitment to financial innovation and economic diversification.
The bill also creates or restructures other strategic funds such as:
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The Texas Advanced Nuclear Development Fund
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The Gulf Coast Protection Account
These funds will operate as separate legal entities and may be situated either inside or outside the state treasury, depending on the enabling legislation that governs each one.
Awaiting Decision on Senate Bill 21
Governor Abbott has not yet acted on Senate Bill 21, a companion measure that would allow Texas to directly invest in cryptocurrencies with a market cap over $500 billion. Currently, only Bitcoin meets that threshold.
If signed, SB21 would authorize the creation of the Texas Strategic Bitcoin Reserve, which would immediately benefit from the protections outlined in HB4488. The Governor has until June 22 to sign the bill, veto it, or let it pass into law without taking any action.
With growing interest in state-level digital asset policies, these legislative steps could mark a pivotal moment for how Texas integrates Bitcoin into its broader financial strategy.
