Texas has passed Senate Bill 21, a measure establishing the Texas Strategic Bitcoin Reserve. This makes Texas the third U.S. state to adopt Bitcoin as part of its state investment strategy, following Arizona and New Hampshire. The bill, officially titled the “Texas Strategic Bitcoin Reserve and Investment Act”, has cleared both legislative chambers and now heads to Governor Greg Abbott’s desk for final approval.
SB21 authorizes the creation of the Texas Strategic Bitcoin Reserve, a special fund outside the state treasury, which allows Texas to invest directly in Bitcoin and other approved cryptocurrencies, according to the legislation. The measure gives the State Treasurer full authority over the reserve’s administration, including acquiring, managing, staking, and potentially liquidating digital assets.
“The establishment of a strategic bitcoin reserve serves the public purpose of providing enhanced financial security to residents of this state,” declares the legislation.
The State Treasurer will manage the fund under strict conditions:
- Only cryptocurrencies with a 12-month average market cap of at least $500 billion can be purchased.
- Assets must be stored using “cold storage” technology to prevent unauthorized access.
- Third-party partners, including qualified custodians and liquidity providers, may be contracted for operations.
- The use of staking, and derivatives is allowed if it benefits the reserve.
Funds can come from legislative appropriations, donations from Texas residents, and returns on investments. While the reserve operates independently, the State Treasurer can temporarily liquidate it for state cash management under limited conditions.
Governor Abbott has not yet indicated whether he will sign the bill, but his past support of Bitcoin suggests a favorable outcome is likely.
“Texas is getting involved early on in this process because we see the future of what bitcoin and blockchain means to the entire world,” said Governor Abbott in an interview. “Texas wants to be the centerpiece of that. So we are promoting it, we are advancing it.”
When New Hampshire passed their bill on May 6, 2025, CEO and Co-Founder of Satoshi Action Dennis Porter remarked that it was just the beginning and now we’re seeing that vision unfold.
“Satoshi Action drafted the model, New Hampshire engraved it into law, and now every treasurer nationwide can follow that roadmap,” stated Dennis Porter on X. “HB 302 proves you can protect taxpayer money, diversify reserves, and future-proof state treasuries—all while embracing the most secure monetary network on Earth. New Hampshire didn’t just pass a bill; it sparked a movement.”