The state of Texas has made a significant move toward on-chain finance by passing a new bill aimed at safeguarding Bitcoin reserves. This legislation positions Texas as one of the few states actively engaging with cryptocurrency at a governmental level.
Key Highlights:
Texas has distinguished itself as the first U.S. state to implement a publicly funded Bitcoin reserve.
Unlike other states, such as Florida and Arizona, which have recently dialed back on similar initiatives, Texas is establishing a fully independent Bitcoin reserve fund detached from the state treasury.
This legislative action follows an executive order from President Trump that advocates for the establishment of a federal strategic Bitcoin reserve.
On Saturday, Governor Greg Abbott signed Senate Bill 21 into law, inaugurating a state-backed Bitcoin reserve that marks a historic first in the nation.
In contrast to efforts seen in Arizona and New Hampshire, Texas is setting up a reserve that operates distinctly from the state’s existing treasury funds.
Texas Comptroller to Manage New Bitcoin Fund
The newly created fund will be managed by Texas Comptroller Glenn Hegar, with the intention of investigating Bitcoin as a potential strategic asset class.
According to David Schwertner, the senator who authored the bill, the state should evaluate its options for investment: “We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years,” he stated earlier in the year.
A complementary bill, HB 4488, has been introduced to further protect the Bitcoin reserve from state fund reallocations and to establish its legal viability, regardless of whether or not Bitcoin is acquired.
JUST IN: Texas Governor Greg Abbott signs Bitcoin Reserve bill SB 21 into law.
Texas is now the third state with a Bitcoin Reserve. pic.twitter.com/2JJOc7anf4
— Bitcoin Laws (@Bitcoin_Laws) June 21, 2025
Notably, this initiative was not highlighted on the governor’s list of legislative priorities, despite its potential implications for both the state and the broader cryptocurrency landscape.
As Texas forges ahead, several other states have elected to withdraw from their pursuits of establishing a strategic Bitcoin reserve. Recently, Florida became the latest state to abandon its crypto legislation, joining others such as Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma.
Additionally, Arizona’s House Bill 1025, which had been making progress and was further along than any other similar legislation in the country, was vetoed on May 3 by Governor Katie Hobbs. She characterized digital assets as “untested investments,” bringing the proposed Digital Assets Strategic Reserve Act to a standstill.
The general reluctance to adopt Bitcoin can be attributed to ongoing concerns regarding its price fluctuations and its long-term potential as a reserve asset.
Meanwhile, on the federal level, President Donald Trump has signed an executive order aimed at creating a national strategic Bitcoin reserve.
Public Companies Shift Toward Bitcoin Investments
In the corporate sphere, an increasing number of public companies are turning to Bitcoin as a form of protection for their balance sheets or as a strategic investment opportunity. Recent statistics reveal that the number of public firms holding Bitcoin has surged to 223, rising from just 124 a few days prior.
Currently, these companies collectively possess over 819,000 BTC, which accounts for roughly 3.9% of the total Bitcoin supply, based on data from BitcoinTreasuries.NET.
MicroStrategy stands out as the largest corporate holder of Bitcoin, boasting 580,250 BTC valued at approximately $60.9 billion. Other significant players in this arena include Marathon Digital Holdings and Tesla, both of which have considerable investments exceeding $1 billion in Bitcoin.
Capital markets are becoming a hotbed for digital asset companies eager to secure funding for extensive Bitcoin acquisitions, driven by the cryptocurrency’s recent ascent to a record high of $111,965 last week.
This remarkable increase, more than 50% since early April, has sparked a flurry of listings and mergers as organizations strive to obtain funding while investor interest remains robust.
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