Texas Establishes Independent Bitcoin Reserve Law

Texas Governor Greg Abbott has approved the law SB 21, which allows for the establishment of an autonomous Bitcoin reserve.

According to the text of the legislation, this reserve will operate independently from Texas’s overall treasury system and aims to enhance the state’s financial stability while serving as a potential tool for inflation protection.

The initiative will be overseen by State Comptroller Glenn Hegar. The law permits the inclusion of digital assets with a market capitalization exceeding $500 billion in the fund, a threshold currently met only by Bitcoin.

In addition to direct purchases, the reserve can expand through forks, airdrops, investment growth, or public donations. A detailed report on the reserve’s performance is expected to be published every two years.

The governor also signed HB 4488, which safeguards selected funds, including the Bitcoin reserve, from being diverted to the state’s general revenue in the event of a shift in priorities.

Meanwhile, Abbott approved an additional 600 various bills. Notably, SB 21 was excluded from the press release that highlighted the most significant approved initiatives.

Texas has become the third U.S. state, alongside Arizona and New Hampshire, to establish a state reserve for the first cryptocurrency.

It’s worth noting that in May, Florida officials discontinued the consideration of two proposed laws that would allow state funds to invest in Bitcoin.

In states like Oklahoma, Montana, Pennsylvania, North and South Dakota, and Wyoming, attempts to create a strategic Bitcoin reserve have also failed.