Texas has officially joined the small but growing list of U.S. states moving toward on-chain finance, passing a bill that protects Bitcoin reserves.
Key Takeaways:
- Texas has become the first US state to launch a publicly funded, standalone Bitcoin reserve.
- Other states like Florida and Arizona have backed away from similar efforts.
- The move follows President Trump’s executive order to establish a federal strategic Bitcoin reserve.
Governor Greg Abbott signed Senate Bill 21 into law on Saturday, establishing a state-funded Bitcoin reserve, the first of its kind in the country.
Unlike similar initiatives in Arizona and New Hampshire, Texas is creating a standalone reserve fund entirely separate from the state treasury.
Texas Taps Comptroller to Oversee New Bitcoin Fund
The fund will be overseen by Texas Comptroller Glenn Hegar and aims to explore Bitcoin as a strategic asset class.
“We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years,” said bill author Senator Charles Schwertner earlier this year.
A companion bill, HB 4488, further shields the Bitcoin reserve from being raided during the state’s routine fund reallocations and secures its legal status regardless of when, or if, Bitcoin is purchased.
Despite its potentially far-reaching implications, the initiative was left out of the governor’s list of top legislative priorities.
Texas’ move comes as some US states abandon efforts to establish a strategic Bitcoin reserve.
In May, Florida became the latest to drop crypto legislation, joining other states, including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma.
Likewise, Arizona’s House Bill 1025, which had advanced further than any other similar bill nationwide, was vetoed on May 3 by Governor Katie Hobbs.
She called digital assets “untested investments,” effectively stopping the proposed Digital Assets Strategic Reserve Act in its tracks.
The hesitance to embrace BTC comes amid concerns over its price volatility and long-term viability as a reserve asset.
On the Federal front, President Donald Trump signed an executive order establishing a strategic Bitcoin reserve.
Public Companies Embrace Bitcoin as Strategic Investment
Meanwhile, public firms continue to embrace Bitcoin as a balance sheet hedge or strategic investment. Recent data shows 223 public companies now hold Bitcoin, up from 124 just days earlier.
In total, more than 819,000 BTC, approximately 3.9% of the total supply, is currently held by public firms, according to BitcoinTreasuries.NET.
MicroStrategy remains the largest corporate Bitcoin holder, with 580,250 BTC worth approximately $60.9 billion.
Other major holders include Marathon Digital Holdings and Tesla, both with over $1 billion in Bitcoin.
As reported, digital asset companies are flooding capital markets to raise funds for large-scale Bitcoin acquisitions, spurred by the cryptocurrency’s rally to a record $111,965 last week.
The surge, up more than 50% from early April, has ignited a wave of listings and mergers as firms race to secure funding while investor appetite remains strong.
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