Texas Governor Greg Abbott has officially enacted the “Bitcoin Reserve Bill” SB 21, positioning Texas as the third U.S. state to establish a formal Bitcoin reserve. This legislative move underscores Texas’s commitment to integrating cryptocurrency within its fiscal framework, enhancing its stature in the digital asset economy.
The newly signed legislation mandates the creation of a state-managed fund dedicated exclusively to investing in cryptocurrencies with a minimum average market capitalization of $500 billion over the past year. This criterion ensures the fund’s exposure is limited to highly liquid and established digital assets, aligning with prudent investment standards.
Furthermore, the bill introduces the Strategic Bitcoin Reserve Advisory Council, tasked with overseeing fund management and providing strategic guidance. Transparency is reinforced through a requirement for a biennial report detailing the reserve’s holdings, reflecting Texas’s commitment to accountability in its cryptocurrency investments.