Texas has become the first US state to establish a publicly funded, stand-alone Bitcoin reserve after Governor Greg Abbott signed Senate Bill 21 into law over the weekend. Unlike Arizona and New Hampshire, which approved similar legislation, Texas allowed the reserve and provided funding for it. The state has allocated $10 million to invest in the Bitcoin reserve. With this approach, Texas has made a significant step toward the future of finance. Trump’s pro-crypto stance attracts more US states to adopt Bitcoin reserves The Bill 21 requires the state to set up a Bitcoin reserve that operates separately from the main treasury. This aligns with a few other states also looking into digital asset reserves. The announcement that Texas has allocated $10 million for a Bitcoin reserve comes months after the Trump administration said it would establish a national crypto reserve. However, such a vehicle is supposed to be funded strictly by budget-neutral means, such as crypto asset seizures or issuing crypto bonds. Abbott also signed bill HB 4488, a companion measure that shields the Bitcoin reserve from standard “fund sweeps” into the state’s general revenue. The legislation changes how states handle digital assets, not just as speculative devices, but as sovereign financial instruments that one might want to hold onto for the long term. Texas sets up Bitcoin reserve to fight inflation and flex financial muscle Texas Governor Greg Abbott signed Senate Bill 21 (SB21), which finally allowed the establishment of the Texas Strategic Bitcoin Reserve. According to the bill’s text, the new reserve will help make the state more financially resilient while acting as a potential hedge against inflation. In addition, only cryptocurrencies with a market cap of over $500 billion can be included, a threshold only Bitcoin currently has. The Texas Comptroller of Public Accounts will manage the fund and be guided by an advisory committee with three crypto investment experts. Aside from direct purchases, the reserve could be filled through forks, airdrops, investment profits, or public crypto donations. A public report listing the fund’s holdings and performance will be issued every two years. With this, Texas becomes the third state in the US to pass Bitcoin reserve legislation. Public firms demonstrate a growing trend of purchasing more BTC for their treasuries Several publicly traded companies follow Michael Saylor’s strategy by adopting Bitcoin as a treasury asset. For instance, on Friday, June 20, US President Donald Trump’s cryptocurrency adviser, David Bailey‘s Bitcoin holding company Nakamoto Holdings, raised $51.5 million in new funds through a private placement in public equity (PIPE) deal to purchase more BTC. Moreover, last week, The Blockchain Group, a technology company listed in Paris, increased its Bitcoin reserves by buying 182 BTC for around $19.6 million. This purchase raised its total holdings to 1,653 BTC. Just over the past month, companies have added Bitcoin to their treasuries, a trend that has been documented with the help of data from BitcoinTreasuries. Furthermore, NET shows public companies still have an appetite for BTC. KEY Difference Wire helps crypto brands break through and dominate headlines fast
