Texas builds a strategic Bitcoin reserve with the governor’s approval. The Texas government is officially building a Bitcoin reserve; the bill, known as Senate Bill 21 (SB21), has been signed by Texas Governor Greg Abbott, formally creating the Texas Strategic Bitcoin Reserve.
Texas is the first state in the USA to build a Bitcoin reserve. The goal of this reserve is to hold Bitcoin for the long term. This reserve is designed to enhance Texas’s financial resilience. According to the bill, this reserve will also help as a hedge against inflation.
A key provision in the legislation is that only digital assets with a market capitalization of over $500 billion are eligible for inclusion—an exclusive criterion that, for now, only Bitcoin satisfies.
The administration of this reserve will be held under the Texas Comptroller of Public Accounts, guided by a three-member advisory committee. This committee will be made up of crypto investment professionals.
The fund is also designed to grow through various means, including from forks, airdrops, investment returns, and public donations in cryptocurrency. The performance report of this Bitcoin reserve will be published every two years.
Governor Abbott has ensured that this reserve will not be used for other state expenses. To protect this reserve from utilization or political changes, Governor Abbott previously signed House Bill 4488.
In the USA, three states, including Texas, Arizona, and New Hampshire, have created a legal framework for a Bitcoin reserve law. However, Texas is the first state to create a Bitcoin reserve and build a dedicated infrastructure for managing this coin reserve by committing public funds..
