While the cryptocurrency world keeps an eye on Bitcoin’s price swings, Texas just made a major move that could reshape how state governments think about crypto.
Governor Gregg Abbott has signed off on a new law that officially launches a state-run Bitcoin reserve—making Texas the third U.S. state to take this step in just five months under the Trump administration’s pro-crypto stance.
What the New Law Means for Texas
On June 20, Governor Abbott signed Senate Bill 21 (SB 21) into law, paving the way for Texas to manage its own strategic Bitcoin reserve.
The law, authored by Senator Charles Schwertner, is quite specific: the reserve will be held outside the state treasury, but still fall under the control of the state comptroller of public accounts.
In short, Texas is setting up a cryptocurrency fund that’s run independently but still under tight state oversight.
The comptroller will oversee what goes in and out of the reserve, including investments and sales.
Only the Big Players Make the Cut
One important rule built into SB 21 is that only cryptocurrencies with a 12-month average market cap of at least $500 billion can be included in the reserve.
At the moment, that essentially limits the reserve to Bitcoin—which currently holds a market cap over $2 trillion—and maybe Ethereum in the future, if its market cap climbs significantly.
The state legislature still has final say on moving any crypto funds into the general treasury, but the comptroller can liquidate crypto holdings to cover reserve management costs without seeking approval.
Legal Protections for the Reserve
Governor Abbott also signed a companion bill, HB 4488, that strengthens the legal framework around the reserve.
This bill prevents the reserve—and certain other state funds—from being swept into the treasury’s general pool during routine budget processes.
Even if Texas hasn’t bought any Bitcoin by mid-2026, this law ensures the reserve remains legally intact.
Texas Joins a Small but Growing Club
Texas now becomes the third U.S. state with a formal Bitcoin reserve, following Arizona and New Hampshire.
The push was partly inspired by a March 6 federal law signed by President Donald Trump, encouraging states to explore Bitcoin as a legitimate investment asset.
According to Bitcoin Laws, five more states are looking to follow suit: Michigan, Ohio, North Carolina, Rhode Island, and Massachusetts all have pending legislation.
However, several others—like Oklahoma, Florida, and Georgia—have run into political and procedural barriers that have either delayed or scrapped their efforts.
Market Snapshot: Bitcoin Still in a Slump
While all this is happening on the legal front, Bitcoin’s price has been on a downward trend.
As of now, it’s trading around $102,768—a dip of roughly 2.7% over the past week and 7.5% over the past month.
It’s part of a broader market correction that’s left some investors jittery, but others see it as a buying opportunity.
What This Signals for the Future
Texas’ move shows how seriously some U.S. states are beginning to treat Bitcoin—not just as a volatile asset, but as a long-term strategic investment.
With legal protections, strong oversight, and a clear focus on top-tier cryptocurrencies, this could set a model for other states watching from the sidelines.
The era of state-level crypto reserves has arrived.
And with a volatile but maturing market, more governments may start jumping on board.