Texas Launches First $10M State Bitcoin Reserve

Texas has become the first U.S. state to actively fund a Bitcoin reserve with a $10 million allocation through Senate Bill 21, signed into law by Governor Greg Abbott, marking a historic step in state-level cryptocurrency policy. The Texas Strategic Bitcoin Reserve grants the state comptroller discretionary authority to buy, sell, and hold Bitcoin separately from the general fund, with no official investment cap, allowing flexibility to manage the reserve as a hedge against inflation and economic volatility. This initiative contrasts with other states like Arizona and New Hampshire, whose crypto reserves are more restricted either to seized assets or capped investments. Texas’s move signals a broader institutional adoption of Bitcoin, encouraging momentum for other cryptocurrencies such as Solana, XRP, and emerging tokens like Little Pepe that address scalability and security in the growing memecoin market. The reserve’s legal framework mandates institutional-grade custody and transparency via biannual public reports, emphasizing long-term fiscal resilience and positioning Texas as a pioneering Bitcoin sanctuary. Additionally, President Donald Trump has signed a federal executive order to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile, though these federal reserves have restrictions on direct investments unlike Texas’s unrestricted model.