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Texas Becomes First U.S. State to Back Bitcoin Reserve with Public Funds

Governor Greg Abbott approved measures barring budget sweeps from redirecting the $10 million fund under oversight by the state comptroller.

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law legislation bitcoin Texas Greg Abbott Bitcoin reserve

Overview

  • Senate Bill 21 and its companion, House Bill 4488, were enacted to establish the Texas Strategic Bitcoin Reserve and shield it from routine legislative fund sweeps.
  • The state allocated an initial $10 million appropriation to purchase bitcoin and seed the newly created reserve.
  • Legislation restricts reserve purchases to digital assets with a 24-month average market capitalization of at least $500 billion, ensuring only bitcoin qualifies.
  • The comptroller’s office will manage acquisitions and custody according to institutional standards, with a bipartisan advisory committee reviewing performance and issuing biannual reports.
  • Financial commentator Peter Schiff criticized the plan on social media, warning that using taxpayer money for cryptocurrency investments could expose the state to speculative risks.