Bill Passage: Texas Becomes Third Bitcoin Reserve State
On July 2, 2026, the Texas Legislature passed Senate Bill 21 (SB21), officially titled the 'Texas Strategic Bitcoin Reserve and Investment Act.' The bill cleared both chambers and now awaits Governor Greg Abbott's signature. If signed, Texas will become the third U.S. state, after Arizona and New Hampshire, to integrate Bitcoin into its state investment strategy.
The legislation declares that 'the establishment of a strategic bitcoin reserve serves the public purpose of providing enhanced financial security to residents of this state.' SB21 authorizes the creation of the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury, granting the State Treasurer full authority over acquisition, management, staking, and potential liquidation of digital assets.
Strict Reserve Management Conditions
Under SB21, the State Treasurer must adhere to strict guidelines:
- Only cryptocurrencies with a 12-month average market capitalization of at least $500 billion may be purchased – effectively limiting eligible assets to Bitcoin.
- All assets must be stored using 'cold storage' technology to prevent unauthorized access.
- Third-party partners, including qualified custodians and liquidity providers, may be contracted for operations.
- Staking and derivatives are permitted if they benefit the reserve.
Funding Sources and Temporary Liquidation
Funds for the reserve can come from legislative appropriations, donations from Texas residents, and returns on investments. While the reserve operates independently, the State Treasurer can temporarily liquidate it for state cash management under limited conditions.
Governor’s Stance and National Impact
Governor Abbott has not yet indicated whether he will sign the bill, but his past support for Bitcoin suggests a favorable outcome. In a previous interview, he stated: 'Texas is getting involved early on in this process because we see the future of what bitcoin and blockchain means to the entire world. Texas wants to be the centerpiece of that. So we are promoting it, we are advancing it.'
When New Hampshire passed its HB 302 on May 6, 2025, Dennis Porter, CEO and Co-Founder of Satoshi Action, remarked: 'Satoshi Action drafted the model, New Hampshire engraved it into law, and now every treasurer nationwide can follow that roadmap. HB 302 proves you can protect taxpayer money, diversify reserves, and future-proof state treasuries—all while embracing the most secure monetary network on Earth. New Hampshire didn’t just pass a bill; it sparked a movement.' Texas's action reinforces that movement.