.png){kind=logo}
Governor Greg Abbott of Texas has signed Senate Bill 21 (SB21), formally joining the world of crypto-backed public finance through the Texas Strategic Bitcoin Reserve. Under this legislation, Texas will be the first state in the United States to use government funds to purchase and possess Bitcoin directly.
When the deal was signed, Bitcoin was trading around the $101,252, which maintains a market cap of over the $500 billion benchmark required for inclusion. According to the bill text, this fund aims to diversify the state’s long-term financial reserves and act as a hedge against inflation. A three-member advisory committee comprising crypto investment professionals will guide fund management and issue biennial performance reports.
Unlike Arizona and New Hampshire, which have passed similar Bitcoin reserve laws, Texas is the first to build a separate legal framework and commit actual state funds to Bitcoin acquisition. The reserve will not only accept direct purchases but can also grow through airdrops, hard forks, investment returns, and public donations.
An advisory board of 5 members will be formed to assist in decision-making and monitoring the reporting process. This governance system aims to provide transparency and secure people's trust. The reserve's performance report will be published publicly every two years, giving people an idea of how Bitcoin fits in financial planning within the state of Texas.
Also Read: Crypto Prices Today: Bitcoin Price Drops to $101K, Ethereum Falls 2.12% Amid Market Sell‑Off
Texas joins Arizona and New Hampshire in passing Bitcoin reserve legislation, but more states may follow. According to recent reports, at least 24 states have introduced similar bills, including Utah, Ohio, Illinois, and New Mexico. Ohio has already implemented tax exemptions for Bitcoin payments below $200 and now recognizes self-custody rights.
Meanwhile, corporate interest in Bitcoin treasury strategies continues to grow. Nakamoto Holdings, founded by U.S. President Donald Trump’s crypto adviser David Bailey, recently raised $51.5 million in a private equity deal to acquire more BTC. In Europe, France-based Blockchain Group expanded its Bitcoin holdings by purchasing 182 BTC for approximately $19.6 million, raising its total to 1,653 BTC.
Analysts believe that the formalization of Texas's entry into the state-supported Bitcoin supplies may play a prominent role in the greater adoption of digital assets, both state and institutional, as public agencies continue to consider alternatives to conventional financial instruments.
