In a move that has drawn national attention, Texas has become the first U.S. state to create a publicly funded Bitcoin reserve. Signed into law on June 20, 2025, Senate Bill 21 establishes the Texas Strategic Bitcoin Reserve, an unprecedented step by a state government to treat cryptocurrency as a strategic long-term asset.
The Reserve, managed by the Texas Comptroller of Public Accounts and overseen by a crypto-expert advisory board, will operate independently from the general state treasury. Only cryptocurrencies with an average market capitalization of at least $500 billion are eligible for the Reserve, making Bitcoin the only eligible currency at the moment.
According to The National Law Review, SB 21 is more than a symbolic investment. It represents a strategic hedge against inflation and market instability, positioning Bitcoin as a protective asset in the state’s financial portfolio. To shield the Reserve from political interference or reallocation, lawmakers also passed HB 4488, which prevents Reserve funds from being swept into general state revenues. This dual legislative framework enhances Texas’s appeal to crypto companies by promising predictability and institutional support for digital assets. The Reserve is also structured to be transparent, as the Comptroller is required to publish a public report biennially detailing the fund’s value and administrative actions taken.
Texas is the first state to commit public funds to a Bitcoin reserve, and it joins Arizona and New Hampshire as one of the first states to establish one. SB 21 is Texas’ latest legislative effort in the cryptocurrency sector.
The upcoming Texas Stock Exchange (TXSE), scheduled to launch in 2026, complements these reforms by offering an alternative to New York’s traditional financial institutions, strengthening Texas’s role as a competitive, innovation-driven business center. With the establishment of the Bitcoin Reserve, the launch of the TXSE, and a suite of business-friendly reforms, Texas is clearly signaling its intention to lead in both traditional and digital economies. The state’s model is not just about low taxes and deregulation, it’s about strategic governance that actively incorporates next-generation financial tools.
