Texas governor signs bill to protect state Bitcoin reserve as a permanent fund if established
The proposed Bitcoin reserve bill, SB21, could automatically become law if Governor Abbott takes no action by June 22.
Key Takeaways
- Texas passed a bill to protect a proposed state Bitcoin reserve from being abolished.
- The legislation exempts the reserve and other dedicated funds from automatic dissolution in 2025.
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Texas Governor Greg Abbott has passed House Bill 4488 (HB4488), a bill that protects select state funds, including any Bitcoin reserve created outside the state treasury, from being swept into general revenue.
Governor Abbott has not yet made a decision on Senate Bill 21 (SB21), which would authorize Texas to invest in Bitcoin and other crypto assets with a market capitalization of at least $500 billion. Only Bitcoin meets this threshold as of now.
In addition to the Texas Strategic Bitcoin Reserve, the legislation names other protected funds, including the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account. These funds will be created or re-created as separate entities either inside or outside the state treasury, depending on their enabling legislation.
The fate of the Texas Strategic Bitcoin Reserve still depends on whether SB21 or similar proposed legislation is passed and signed into law. If established, the fund would be legally protected under the framework now set by HB4488.
Governor Abbott has until tomorrow, June 22, to sign or veto SB21, which was sent to him on June 1. Because it was delivered near the end of the legislative session, Texas law gives him 20 days after adjournment to act.
If Abbott does nothing by the deadline, the bill automatically becomes law.
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