Texas Becomes First State to Commit $10 Million to Bitcoin Treasury Reserve

Texas has taken a groundbreaking step in the world of crypto by becoming the first U.S. state to establish a publicly funded Bitcoin reserve. Governor Greg Abbott signed Senate Bill 21 into law over the weekend, allocating $10 million to purchase Bitcoin and create a state-managed cryptocurrency treasury. This move sets Texas apart from other states that have explored similar ideas but failed to commit actual funds. The Lone Star State’s action signals a growing acceptance of Bitcoin as a legitimate asset in government financial strategies.

The new law mandates the creation of a Bitcoin reserve, which will operate independently from Texas’ primary treasury. Managed by the state comptroller and guided by a three-member crypto advisory committee, the reserve will grow through direct Bitcoin purchases, as well as potential forks, airdrops, profits, or public donations. To ensure transparency, the state will issue a detailed public report every two years. This structured approach demonstrates Texas’ commitment to integrating digital assets into its financial framework with clear oversight.

A Strategic Move for Financial Innovation

While $10 million represents just 0.0004% of Texas’ overall state budget, experts view this as a significant milestone. Lee Bratcher, president of the Texas Blockchain Council, emphasized that the reserve sends a strong message about Texas’ leadership in the future of finance. The law restricts the reserve to cryptocurrencies with a market cap exceeding $500 billion, a criterion currently met only by Bitcoin at this time. This focus on the largest and most established cryptocurrency underscores the state’s cautious yet forward-thinking approach.

In addition to Senate Bill 21, Governor Abbott signed House Bill 4488 to protect the Bitcoin reserve from being reallocated during budget adjustments. This ensures the state’s cryptocurrency holdings remain secure and dedicated to their intended purpose. Unlike Arizona and New Hampshire, which passed legislation for crypto reserves but never funded them, Texas has taken concrete steps to back its vision. The state’s actions could inspire others to modernize their treasury strategies and explore digital assets.

Texas’ move comes as the federal government, under the Trump administration, considers a national crypto reserve funded through seizures or bond issuance. By contrast, Texas’ direct funding approach reflects a proactive stance on embracing Bitcoin as a hedge against fiat currency risks. The state aims to position itself as a leader in the cryptocurrency space, fostering innovation and economic resilience. This initiative aligns with Texas’ broader ambition to attract blockchain businesses and talent.