Texas has become the first U.S. state to formally establish and fund a publicly held bitcoin reserve after Governor Greg Abbott signed Senate Bill 21 into law.
The legislation mandates the creation of a bitcoin reserve managed separately from the state’s general treasury, with an initial appropriation of $10mn allocated for bitcoin purchases.
This move places Texas ahead of states like Arizona and New Hampshire, which have authorized similar reserves without allocating public funds (see Crypto Market Outlook).
The reserve will be safeguarded from integration into general state revenue through a companion bill, HB 4488, also signed by the governor.
This measure prevents the bitcoin reserve from being affected by routine budgetary transfers or re-appropriations.
According to Lee Bratcher, president of the Texas Blockchain Council, the $10mn outlay represents approximately 0.0004% of the state’s budget but signals strategic intent.
Bratcher stated that the decision could attract digital finance investors and entrepreneurs by demonstrating Texas’ alignment with digital asset infrastructure.
This development follows the federal government’s earlier announcement of a national crypto reserve, though that initiative is to be funded through non-budgetary sources such as asset seizures or the issuance of crypto-backed bonds (see Blockchain vs. Cryptocurrency: What’s the Difference?).
With this legislation, Texas positions bitcoin not simply as a speculative investment but as a financial asset with sovereign utility.
The state’s initiative could prompt further state-level action across the U.S. as governments explore digital asset adoption and diversification strategies.
