21.06.2025 20:34

Texas Governor Greg Abbott has signed into law Senate Bill 21, establishing a state-backed Bitcoin reserve fund, making Texas only the third U.S. state to officially embrace this novel approach to public finance. This groundbreaking legislation solidifies Texas's position as a leader in the burgeoning cryptocurrency market and demonstrates a proactive engagement with digital asset technology within its governmental structure.

The new law mandates the creation of a dedicated state fund exclusively for cryptocurrency investments. Stringent criteria have been implemented, requiring investments to be limited to digital assets maintaining a minimum average market capitalization of $500 billion over the preceding year. This ensures the fund’s holdings will consist primarily of established, highly liquid cryptocurrencies, minimizing risk and adhering to sound financial practices.

Furthermore, SB 21 establishes a Strategic Bitcoin Reserve Advisory Council. This council will hold crucial oversight responsibilities, guiding the fund’s management and ensuring adherence to established investment strategies. Public accountability is also prioritized: a biennial report detailing the fund's holdings will be publicly released, maintaining transparency in the state's cryptocurrency ventures. This commitment to transparency further strengthens public trust in the initiative.

In essence, Governor Abbott's signature on SB 21 represents a significant milestone in the integration of cryptocurrency into mainstream public finance. Texas's proactive approach sets a precedent, potentially influencing other states to consider similar legislative measures and further integrating digital assets into the fabric of government. The move demonstrates a forward-thinking approach to financial management in the rapidly evolving landscape of the digital economy.