Texas stands just one quiet procedural pulse away from establishing the largest government-administered collection of bitcoin in the country. Senate Bill 21, known as the Texas Strategic Bitcoin Reserve and Investment Act, was sent to Governor Greg Abbott on June 1 after successfully passing both legislative houses by significant margins.
Texas Bitcoin Reserve on the Verge of Becoming Legislation
According to Article IV, Section 14 of the Texas Constitution, the governor has twenty days post final adjournment to either endorse or reject a bill; neglecting to do so results in the legislation becoming law automatically. The 89th Legislature adjourned sine die on June 2, meaning the deadline is set for Sunday, June 22. Legislative reference staff have already marked this date as the final moment the governor can intervene before the “no-signature” implementation takes effect.
The countdown was announced early Tuesday by the policy-observing account @Bitcoin_Laws, which alerted followers: “The deadline for Governor Abbott to endorse (or reject) Bitcoin Reserve Bill SB 21 is this Sunday, June 22. Should he do neither, it will automatically become law as per the Texas Constitution.”
Dennis Porter, CEO of the Satoshi Act Fund and a primary strategist behind similar legislation nationwide, emphasized the broader implications: “Earlier this year, New Hampshire and Arizona became the first and second states to enact ‘Strategic Bitcoin Reserve’ laws. Texas is set to be the third… Don’t underestimate the states.”
This eight-page statute establishes a “distinct fund separate from the state treasury” known as the Texas Strategic Bitcoin Reserve, overseen by the Comptroller of Public Accounts. SB 21 permits the State Treasurer to invest in Bitcoin and other cryptocurrencies with substantial market capitalizations, specifically those averaging at least $500 billion over twelve months.
The comptroller acquires explicit authority to engage qualified custodians utilizing cold-storage technology, arrange independent audits, employ derivatives for hedging, and—should cash-flow requirements arise—temporarily liquidate coins to support the general treasury, with a statutory obligation to promptly replenish funds. A five-member advisory committee (the comptroller alongside four appointees) will propose allocation and risk-management strategies and is required to publish a biennial reserve report every even-numbered year.
Initially submitted on February 12 by Senator Charles Schwertner, SB 21 received unanimous Senate endorsement on March 6, survived several House amendments in May, and secured final approval in a late-night conference report passed by the House 110–25 and the Senate 23–8 on May 30. It was enrolled and sent to the governor the next day. The bill was designated a priority for the session by Lt. Governor Dan Patrick and was supported in the House by Representative Giovanni Capriglione.
Schwertner portrayed the reserve as “a safeguard against inflation” and a method to solidify Texas’s standing as “the crypto hub.” Comptroller Glenn Hegar, whose office will administer the program, indicated to a Senate committee that “establishing a strategic bitcoin reserve is a natural progression for Texas,” noting that the measure “takes a prudent approach to managing a potentially unstable asset, which is crucial when investing public funds.”
Abbott has not publicly commented, though his press secretary Andrew Mahaleris stated in late May that the governor “is eager to evaluate this proposal.”
If SB 21 navigates the constitutional timeline on Sunday, Texas will join New Hampshire—whose HB 302 allows up to five percent of specific public funds to be invested in assets surpassing $500 billion in market cap—and Arizona, where HB 2749 redirects earnings from unclaimed property into bitcoin, both legislated in early May.
At the time of this writing, BTC was trading at $105,764.
Featured image produced using DALL.E, chart from TradingView.com
Editorial Process for bitcoinist focuses on delivering well-researched, precise, and impartial material. We adhere to rigorous sourcing criteria, and each page is subjected to meticulous examination by our team of leading technology experts and experienced editors. This procedure guarantees the integrity, relevance, and worth of our content for our readership.
