Texas becomes the first US state with an officially taxed Bitcoin fund – a historic step toward digital stability. Other states may follow its example.

Governor Greg Abbott signed Senate Bill 21 (SB 21), making Texas the first US state to use public funds for a strategic Bitcoin reserve. The reserve will be managed by the State Comptroller and guided by a group of experts. The goal is to establish Bitcoin as a hedge against inflation and a financial diversification tool-independent from the regular state budget.

Structure and governance

Funding will be provided through a dedicated fund, separate from the general budget. Resources may come from tax revenues, stock market gains, donations, airdrops , or forks. Approved investments must meet a minimum market capitalization of USD 500 billion-currently satisfied only by Bitcoin. A public report on holdings and performance will be released every two years. The governor has already expressed strong support for the legislation.

Supporters like Senator Charles Schwertner and Rep. Giovanni Capriglione view Bitcoin as digital gold. It stabilizes state finances, counters US dollar risks, and positions Texas as a crypto leadership hub. The regulation follows similar initiatives in Arizona and New Hampshire, but Texas is the first to use public funds-a significant distinction.

Criticism and challenges

Critics warn of risks such as high volatility and a lack of transparency in blockchain investments. Some see the initiative as unnecessary state support for the crypto industry. The environmental debate also continues, given the energy-intensive nature of Bitcoin mining. Nevertheless, lawmakers remain committed to their vision of making Texas economically more resilient and future-ready.

The decision to establish a state-backed Bitcoin reserve is also linked to Texas' leading role in the US crypto mining sector. The state is home to some of the country’s largest mining farms and benefits from relatively low energy costs and crypto-friendly regulation. The new reserve initiative may also be interpreted as a signal to the industry that Texas aims to further expand its role as a crypto hub-with an ecosystem that spans regulatory openness to institutional acceptance.

Texas joins a growing movement- a total of three US states have already approved Bitcoin reserves. This approach could set the trend for national strategies, particularly if the US government advances similar plans.