- Texas has signed new legislation allowing the state to hold Bitcoin in its treasury
- Lawmakers have passed House Bills 1576 and 1666, laying the groundwork for digital asset custody and oversight
- Texas is the third state to formalize its Bitcoin treasury plans after New Hampshire and Arizona
Texas has rubber-stamped its ability to hold Bitcoin as part of its treasury reserves, making it the third state to do so. Governor Greg Abbott yesterday signed two bills into law which allow the state to create a legal and technical framework for managing and safeguarding digital assets. Texas has pitched itself as the most pro-Bitcoin state in the U.S., and so it is fitting that it should be among the first handful to approve the concept of state-owned Bitcoin.
New Laws Pave the Way for State-Level Bitcoin Custody
The two bills were introduced in March following the tabling in 2024 of a Bitcoin reserve bill. House Bill 1576 establishes a working group within the Texas Department of Banking to study the potential benefits and logistics of a state-run digital asset custody system. In passing the bill, the state is now officially evaluating how to securely hold cryptocurrencies like Bitcoin, not just for individual investors or private firms, but potentially as part of government-held reserves.
The second bill, House Bill 1666, introduces new transparency and audit requirements for digital asset service providers operating in the state, a measure which aims to improve consumer protection and ensure that crypto custodians aren’t misusing customer funds, a key concern in the wake of high-profile collapses like FTX.
Governor Abbott, a long-time supporter of cryptocurrency innovation in Texas, has said the new laws are part of a broader effort to ensure the state leads in blockchain development, while lawmakers have cited the appeal of Bitcoin’s fixed supply and decentralized nature as a hedge against inflation and political instability. While Texas isn’t putting Bitcoin on the balance sheet just yet, the bills mark an important step toward integrating digital assets into public finance; in Governor Abbott’s words, “Texas is open for business.”
Bitcoin Momentum Growing in U.S.
By legitimizing the idea of state-level Bitcoin custody, Texas has added momentum to a growing movement in U.S. states exploring alternative reserve assets. New Hampshire and Arizona
Have already signed Bitcoin treasuries into law, and Wyoming and Florida are also pursuing crypto-friendly regulations.
Given its self-stated role as a leader for Bitcoin in the country, Texas couldn’t risk being left behind, and can now start to put its money where its mouth is.
