Ether Could Be Added to Texas Strategic Bitcoin Reserve If Market Cap Holds, Lawmaker Says

Texas’ legislature passed a law in 2025 to create a Strategic Bitcoin Reserve that can, under certain conditions, include other cryptocurrencies. The law requires any additional crypto to have an average market capitalization of at least $500 billion over the most recent 24-month period.

This year the bill’s original sponsor, Texas state Senator Charles Schwertner, indicated he views Ether as a potential next reserve asset if it meets the statutory market-cap test. He told reporters that a sustained market-cap performance over 24 months would make Ether a reasonable candidate for inclusion.

Under the law, Bitcoin currently exceeds the threshold with a market cap above $2 trillion. By contrast, Ether has only surpassed the $500 billion mark intermittently — briefly in 2021 and again for limited periods in 2024–2025. A sharp price decline on Friday brought ETH’s market cap to roughly $494 billion at the time of publication, placing it below the required 24‑month average threshold.

How would Texas add Ether to the reserve if it qualifies?

If Ether meets the 24‑month average market-cap requirement, the state comptroller would direct implementation steps, including selecting a custodian that is a state or federally chartered financial institution or another entity regulated in Texas. Operational rules and investment timing would be determined before any purchases.

How does Texas’ law differ from other recent state measures?

Arizona and New Hampshire passed crypto reserve laws in 2025 with differing provisions. Arizona’s fund incorporates crypto seized through criminal forfeiture, while New Hampshire permits treasury investments in crypto assets that meet a $500 billion market-cap test. Texas’ law is distinct in allocating sovereign funds specifically for a strategic reserve rather than relying solely on seized assets.

Why does the 24‑month market-cap rule matter?

The 24‑month averaged market-cap requirement is intended to ensure that any asset added to a taxpayer-backed reserve demonstrates sustained scale and liquidity. This reduces the risk of adding highly volatile or short-lived assets to a sovereign reserve.

What are the immediate implications for Ether investors and markets?

Practically, the Friday decline that reduced ETH’s market cap below $500B removes near‑term prospects for Texas to add Ether to its reserve. Market participants should note that inclusion would require a sustained recovery and stable capitalization over a full 24‑month window, not a single-month rebound.

Frequently Asked Questions

Can Texas add Ether to its reserve right now?

No. Under the statute, Ether must show a 24‑month average market cap of at least $500 billion. After a recent price drop, ETH’s market cap was about $494 billion, so it does not currently meet the law’s threshold.

Who decides custodianship and custody rules for the reserve?

The Texas comptroller will oversee implementation details, including custodial arrangements. Any custodian must be a state or federally chartered financial institution, or an entity regulated to operate in Texas under the law’s conditions.

Key Takeaways

• Eligibility: 24‑month average market cap ≥ $500B is required for any crypto beyond Bitcoin.
• Current status: Bitcoin qualifies; Ether currently falls short after a recent market-cap dip.
• Next steps: Comptroller will set custodial and operational frameworks before any asset addition.

Conclusion

Texas’ Strategic Bitcoin Reserve law establishes a clear market-cap gate for adding other cryptocurrencies. Ethereum remains a potential candidate, but only if its 24‑month average market capitalization meets or exceeds $500 billion. Stakeholders will watch ETH’s performance and comptroller guidance over the coming months.