Texas has officially become the first U.S. state to create a government-managed Bitcoin reserve. Governor Greg Abbott signed Senate Bill 21 into law, establishing the Texas Strategic Bitcoin Reserve — a bold initiative aimed at protecting the state’s financial assets against inflation and diversifying its investment strategy.
This groundbreaking legislation positions Texas at the forefront of digital asset adoption at the state level, marking a significant shift in how public funds can be managed in the digital age.
Bitcoin Chosen for Strength, Stability, and Market Size
Under Senate Bill 21, Bitcoin is currently the only digital asset eligible for inclusion in the reserve. Lawmakers selected Bitcoin due to its proven market resilience, large global adoption, and decentralized structure, making it the most trusted and secure cryptocurrency available today.
The goal of the reserve is to offer Texas a hedge against inflation and economic uncertainty by leveraging Bitcoin’s long-term growth potential. This move not only strengthens the state’s financial security but also sets a precedent for how digital assets can complement traditional state investment portfolios.
Managed by the State with Industry Expertise and Transparency
The Texas Comptroller of Public Accounts will manage the Bitcoin reserve, supported by an advisory panel of cryptocurrency experts. This team will guide the development and execution of the reserve’s investment strategy, ensuring responsible management aligned with both government policies and industry best practices.
To promote public trust and accountability, the reserve will issue a comprehensive report every two years, detailing its performance, holdings, and operational updates. Additionally, the fund has the ability to grow through investment gains, crypto airdrops, or public donations, without depending on new taxpayer funding.
By launching this initiative, Texas joins innovation-focused states like Arizona and New Hampshire, but takes a significant lead by dedicating public resources and legal infrastructure to Bitcoin. With this bold step, Texas is not only safeguarding its financial future — it’s also staking a strong claim as a national leader in cryptocurrency policy.
