In large-scale developments, the Texas government officially signs strategic Bitcoin reserves, thereby diversifying its financial investment strategies. Following the event, Texas has officially become the third state to own Bitcoin Reserve Fund in under five months of the Donald Trump administration.
Texas operates a Bitcoin Reserve that is independent of the Department of Treasury
On June 20th, Texas Governor Greg Abbott officially established SB 21. It proposed to form a strategic Bitcoin reserve aimed at investing in the digital asset market. The bill, currently in law and written by Senator Charles Schwartner, says that the proposed Bitcoin reserve exists outside the state Treasury Department, but under the investment authority of the public account director.
Additionally, the reserve is permitted to hold Bitcoin and other cryptocurrencies as directed by the Secretary. However, only cryptocurrencies with an average market capitalization of $500 billion over 12 months can log in to the reserve that effectively limits entries into Bitcoin ($2.07 trillion) and possibly Ethereum ($27.23 billion) over the next few years.
Meanwhile, all investments in reserves in the state Treasury Department require legislative approval via the general expenditures or other laws. However, the Secretary is permitted to withdraw Bitcoin or spend net income from asset sales to cover all costs associated with the management of the reserve.
Alongside SB 21, Governor Abbott signed HB 4488. This is another legislation that prevents funds from strategic Bitcoin reserves and other certain states from being subjected to regular financial fund sweeps, while ensuring the legal presence of the reserve, even if Bitcoin has not been purchased by the summer of 2026.
Bitcoin Reserve Races in the State
On March 6, US President Donald Trump signed the law to the federal strategic Bitcoin reserve, encouraging states to explore the best cryptocurrency as an investment tool. As mentioned before, Texas is currently the third state in the US to operate a strategic Bitcoin Reserve after Arizona and New Hampshire.
According to Bitcoin Act data, there are currently five other states seeking to join the pack during review in the proposed legislative bill. These states include Michigan, Ohio, North Carolina, Rhodes and Massachusetts.
Meanwhile, efforts in Oklahoma, Florida and Georgia are facing particularly significant setbacks, with Bitcoin reserve bills being proposed that have been stagnated or formally repealed due to legislative or political obstacles.
At the time of pressing, Bitcoin continues trading at $102,650 after a 2.74% drop last week. This negative performance highlights the price struggle of assets over the past month amid a fierce price correction that results in a loss of 7.50%.
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