Texas Treasury Eyes Bitcoin: Up to$2.1B Could Flow Into Crypto
- Keyword Financial
- Jun 23
- 4 min read
Introduction
Texas has taken a pioneering step in state-level cryptocurrency adoption by passing Senate Bill 21, which creates the Texas Strategic Bitcoin Reserve. Signed into law by Governor Greg Abbott in June 2025, this legislation allows the state to invest public funds in Bitcoin, with the potential to allocate up to$2.1 billion if 10% of its treasury fund is used. The reserve will be managed separately from the state’s general treasury, overseen by the Texas Comptroller of Public Accounts and guided by an advisory committee of Bitcoin investment experts. Only digital assets with a market capitalization above$500 billion—currently, only Bitcoin—are eligible for investment, ensuring a focus on established cryptocurrencies.
Supporters of the reserve argue that it will help diversify Texas’s assets, provide a hedge against inflation, and position the state as a leader in digital finance. The law includes strong risk controls, clear investment rules, and transparency measures such as biennial public reports on the reserve’s holdings and performance. The fund can grow through legislative appropriations, investment gains, fees, and voluntary Bitcoin donations, and is protected from being redirected into the general revenue fund by an additional law, House Bill 4488. This structure is designed to keep the reserve insulated from budget politics and ensure its long-term viability.
While Texas is not the first state to pass Bitcoin reserve legislation, it is the first to commit public funds and create a dedicated structure for managing Bitcoin holdings. The move comes as other states, like Arizona and New Hampshire, have considered similar measures but have not yet implemented them at this scale. The initiative is seen as both a bold financial strategy and a potential model for other states, though critics caution about the risks of Bitcoin’s price volatility and the evolving regulatory landscape. The success or challenges of Texas’s approach will likely be closely watched by policymakers and the broader financial community.
