Texas has taken a bold step into the world of cryptocurrency by officially launching the Texas Strategic Bitcoin (BTC) Reserve. Governor Greg Abbott signed Senate Bill 21 into law, making Texas the third U.S. state to establish such a reserve, following Arizona and New Hampshire. This step is an indication of increased adoption of digital money in states’ financial policies.
New Bill Creates A State-Secured Bitcoin Reserve
On June 1, 2025, the bill referred to as SB 21 became available to Governor Abbott. Until June 22, he could have signed it, vetoed it, or allowed it to pass automatically into the law, as permitted by the Texas Constitution. In signing it, Abbott put Texas in good position to become one of the few, yet earliest adopters of BTC as a strategy asset.
This is part of a move by the Texas Strategic Bitcoin Reserve to be at the forefront of the development of the new financial system. This act of putting up this reserve shows that Texas believes in the long-term value of the leading cryptocurrency and as a method of diversifying investments for the state. This would also help in attracting businesses and innovators within the crypto space to the state where they will help in its economic development.
SB21 would allow the state to invest in cryptocurrencies with a market value of at least $500 billion. Right now, only BTC qualifies.
Texas Takes Step Toward Crypto Adoption Despite Market Volatility Concerns
The passage of SB 21 was not without debate. Its proponents say it is one step ahead in hedging against economic uncertainty because BTC has a fixed amount and cannot be inflated.
Critics, though, refer to its volatility when the price of this digital asset can change drastically. This notwithstanding, the Texas legislators in a bipartisan manner proceeded to pass the bill, which demonstrated the ability of the state to make calculated risks.
Such a shift may encourage other state authorities to consider their possible adoption of similar policies, which would likely transform the attitude of the authorities towards cryptocurrencies.
New Texas Law Protects Bitcoin Reserves against Appropriation by General Revenue
On Friday, Governor Abbott signed House Bill 4488 into law, a legislation that protects the state’s BTCs and the other special funds. This new rule will require that assets outside the state treasury, such as the Texas Strategic Bitcoin Reserve, cannot be swept into general revenue.
The bill makes funds like the Texas Advanced Nuclear Development Fund, the Texas Gulf Coast Protection Account, and others safe so that they can only be used in the manner intended.
States Weigh Crypto Strategies
New Hampshire’s law allows its treasurer to buy BTC and other major digital assets, with a limit of 5% of the state’s portfolio to manage risk. Arizona’s Senate recently approved a bill to expand its crypto infrastructure, though another proposal to invest seized funds in BTC was vetoed by Governor Katie Hobbs, who cited concerns about the risks of virtual currency for retirement funds.
Other states are showing interest, too. Michigan proposed multiple rules that would permit its retirement fund to invest in Bitcoin, allow BTC mining on unused oil and gas wells, and ban the use of digital currencies by central banks. Yet, many other states are concerned about the volatility of Bitcoin and the possibility of its stability as a reserve asset.
For Texas, House Bill 4488 lays the groundwork for a future where Bitcoin could play a key role in the state’s financial strategy.
Texas Sheriff Recovers Funds After Bold Bitcoin ATM Intervention
Meanwhile, a Texas sheriff took drastic action to help a family scammed out of $25,000 through a Bitcoin ATM. Jasper County Sheriff Chuck Havard used a power-cutting tool to open the machine, recovering about $32,000, including the family’s lost funds. The incident has sparked heated discussion among cryptocurrency users about whether the sheriff’s actions were justified.
The scam began when a fraudster, posing as a government official, convinced a family in Jasper County, northwest of Houston, to deposit $25,000 into a Bitcoin ATM to pay fake fines. The BTC ATM, which is managed by Bitcoin Depot, was then targeted by Havard’s team after he obtained a search warrant.
