Texas Governor Greg Abbott has officially enacted the “Bitcoin Reserve Bill” SB 21 on June 21, enabling the Lone Star State to invest from its state funds into Bitcoin without any upper limit. This groundbreaking legislation introduces the Texas Strategic Bitcoin Reserve, permitting the Comptroller to acquire Bitcoin as long as its market value surpasses $500 billion, a criterion uniquely met by Bitcoin at present.
### Texas Steps into the Bitcoin Era with a Potential $2.2 Billion Investment
The signing of this bill positions Texas as the third U.S. state to establish an official Bitcoin reserve, following New Hampshire and Arizona. The legislation does not set a cap on how much can be allocated, indicating the possibility that lawmakers might allocate the entirety of the Economic Stabilization Fund’s balance. With the fund closing fiscal 2024 holding $21 billion in cash and investments, Texas has the potential to emerge as the largest public-sector Bitcoin holder in the nation. The state could channel up to $2.1 billion into Bitcoin, assuming an allocation of up to 10% of its budget to BTC, mirroring Arizona’s intended but unsuccessful bill. Combined with New Hampshire, state allocations could approach approximately $2.2 billion.
Governor Kelly Ayotte of New Hampshire sanctioned House Bill 302 on May 6, which allows the treasurer to invest in any digital asset exceeding a $500 billion market cap into a strategic reserve. The law limits investments to 5% of the state’s Revenue Stabilization Reserve Account, translating to about $14.6 million based on New Hampshire’s financials for fiscal 2023.
### Arizona’s Attempt Falls Short
Arizona aimed to create a Bitcoin and Digital Asset Reserve Fund through House Bill 2749, which was enacted on May 7. The bill planned to allocate unclaimed or seized digital assets to a state-managed wallet for staking or airdrops, with proceeds benefiting the fund. Nevertheless, the state has yet to disclose the amount of crypto assets seized.
SB 1373, another proposal in Arizona, was vetoed on May 12. It would have allowed the treasurer to allocate up to 10% of the Budget Stabilization Fund (BSF) to Bitcoin, potentially leading to a $150 million investment and elevating Arizona’s Bitcoin investment to over $2.3 billion if a similar future bill passes.
Texas’s ambitious move into Bitcoin investment underscores the growing acceptance of cryptocurrencies within state-level fiscal strategies, setting a precedent for other states to consider digital asset allocations.
Join the conversation on Twitter: “Texas blazes a trail with unlimited Bitcoin investments, joining NH and AZ in the strategic crypto reserve space. Will this bold move pay off? #Bitcoin #TexasBitcoinLaw”
