Texas Governor Greg Abbott has signed the Bitcoin Reserve Bill SB 21 into law, positioning Texas as the third U.S. state to create a government-backed Bitcoin reserve. This landmark legislation integrates cryptocurrency into the state’s fiscal strategy, signaling a significant advancement in institutional digital asset adoption.
The bill mandates the creation of a state-managed fund exclusively for investing in cryptocurrencies that maintain a minimum average market capitalization of $500 billion over the preceding year. This high threshold ensures investments target only the most established digital assets.
Oversight of the reserve will be conducted by a newly formed Strategic Bitcoin Reserve Advisory Council, responsible for fund management and providing strategic guidance on cryptocurrency holdings. Transparency measures include mandatory biennial public reports detailing the reserve’s portfolio composition and performance.
This move reinforces Texas’ commitment to becoming a leader in the digital asset economy, following similar initiatives by two other U.S. states. The state-backed reserve aims to provide long-term financial stability while legitimizing cryptocurrency within governmental financial frameworks.