Bitcoin dominance advances in Texas, as Governor Greg Abbott has signed SB 21 into law, creating the Texas Strategic Bitcoin Reserve. Texas is the first U.S. state to allocate public funds to a dedicated Bitcoin reserve, standing apart from similar efforts in Arizona and New Hampshire. This landmark action positions Texas at the forefront of state-led cryptocurrency adoption.
A Benchmark for Bitcoin Dominance
The Texas Strategic Bitcoin Reserve will be managed by the Texas Comptroller of Public Accounts. The bill’s text highlights the reserve’s aim to help the state hedge against inflation and boost Texas’s economic resilience. Only cryptocurrencies with an average market capitalization of at least $500 billion over the past 12 to 24 months are eligible; currently, this requirement is met only by Bitcoin. This further cements Bitcoin dominance in the cryptocurrency market landscape.
Investment Strategy and Safeguards
Lee Bratcher, President of the Texas Blockchain Council, indicated that initial investment in the reserve could reach “tens of millions of dollars.” This measured strategy is coupled with strong protections: an additional bill, HB 4488, restricts the transfer of Bitcoin reserve funds into Texas’s general revenue. This ensures that the Bitcoin reserve is preserved for its intended purpose and remains a focused financial tool for the state.
- Texas is the first state to allocate public funds for a dedicated Bitcoin reserve.
- Only cryptocurrencies with a $500 billion+ market cap over 12–24 months qualify—at present, only Bitcoin meets this benchmark.
- Legislators have introduced measures to keep the reserve protected from unrelated state spending.
As other states explore cryptocurrency initiatives, Texas’s approach could serve as a model. Lawmakers describe the reserve as a calculated strategy rather than a speculative move. For those interested in learning about other digital assets, read our resource on stablecoins.
Learn more about Bitcoin in the broader marketplace on the CoinMarketCap Bitcoin page.