TLDR
- Texas Lays Legal Groundwork for Bitcoin Reserve
- Bitcoin Reserve in Sight as Texas Secures Key Funds
- Texas Prepares for Bitcoin Era with New Legal Shield
- HB 4488 Passed, All Eyes on SB 21 for Bitcoin Buy-In
- Texas Takes Lead in State Bitcoin Reserves
Texas has enacted a new law that secures funds potentially linked to a future Bitcoin Reserve. House Bill 4488 protects these funds from being absorbed into the state’s general revenue, creating a foundation for holding digital assets. This legal framework sets the stage for Texas to move forward with plans to establish a Bitcoin Reserve.
House Bill 4488 Secures Protected Fund Status
Texas Governor Greg Abbott signed House Bill 4488 shielding select funds from being diverted into general revenue. This law applies to strategic accounts, including any future Bitcoin Reserve held outside the state treasury. It also applies to funds like the Texas Advanced Nuclear Development Fund and the Gulf Coast Conservation Account.
BREAKING: TEXAS GOVERNOR SIGNS BILL TO PERMANENTLY ENSHRINE STRATEGIC #BITCOIN RESERVE INTO LAW
THE SBR IS ON HIS DESK. IT’S COMING 🚀 pic.twitter.com/ycViBa3ZuO
— The Bitcoin Historian (@pete_rizzo_) June 20, 2025
These protected funds may exist as separate financial entities under state authority. Based on future statutory directives, they can be located either within or outside the state treasury. This legal structure supports the potential creation of a state-managed Bitcoin Reserve by ensuring long-term financial separation.
The bill aims to preserve each fund’s original purpose and ensure dedicated use. It strengthens fiscal discipline while allowing Texas to manage assets beyond traditional boundaries, enhancing confidence in the state’s ability to manage a possible Bitcoin Reserve independently.
Senate Bill 21 Could Authorize Bitcoin Purchases
While HB 4488 provides legal protection, Senate Bill 21 is necessary to authorize a state-level Bitcoin Reserve. This bill allows the Texas comptroller to use surplus general revenue for buying digital assets with over $600 billion in market value. Currently, only Bitcoin qualifies under this threshold.
Governor Abbott received SB 21 on June 1, with a deadline of June 22 to act. If unsigned or not vetoed, it will automatically become law, as allowed by the Texas Constitution. This mechanism ensures the legislative process concludes on time.
SB 21 outlines transparent procedures for Bitcoin Reserve purchases similar to rules governing gold held by the Texas Bullion Depository. It ensures accountability, oversight and strategic planning when allocating surplus funds. If enacted, this bill will officially enable the state to create and hold a Bitcoin Reserve.
Broader Trend Toward State-Level Bitcoin Reserves
Arizona has already passed legislation to create a digital reserve fund. These moves signal growing acceptance of Bitcoin as a potential strategic asset in public finance. At the federal level, discussions are also emerging around a national Bitcoin Reserve. Representative Tim Burchett has introduced a bill to support this concept, reinforcing state-led momentum. Texas’s decision on SB 21 could influence how other states proceed with their digital asset strategies.
HB 4488 and SB 21 reflect Texas’s evolving approach to digital finance. By passing HB 4488, the state has cleared a key legal hurdle for managing a Bitcoin Reserve. Now, attention shifts to whether the authorization bill will pass into law in the coming days.
If approved, the Bitcoin Reserve will operate under the safeguards outlined in HB 4488. These protections will prevent reallocation and preserve the integrity of the fund’s intended use. Texas will then become one of the first U.S. states to hold Bitcoin under a clear statutory framework legally.
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