Crypto Law Profile
Texas SB 21 creates a state-managed Strategic Bitcoin Reserve under the Comptroller, limiting purchases to high-market-cap crypto assets and requiring advisory, custody, audit, and biennial reporting mechanisms.
The Texas Strategic Bitcoin Reserve and Investment Act is Texas’s 2025 state statute creating a cryptocurrency reserve under the custody and management of the Texas Comptroller of Public Accounts. Enacted through Senate Bill 21 in the 89th Texas Legislature, the act became effective immediately on June 20, 2025. The law is focused on state management of bitcoin and other qualifying cryptocurrencies; it is not a private-market licensing regime, consumer protection statute, or tax rule.
SB 21 adds Subchapter V to Chapter 403 of the Texas Government Code. The subchapter establishes the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury. The reserve may include money appropriated or deposited by the legislature, revenue dedicated by law, qualifying cryptocurrency purchased for the reserve, cryptocurrency received from forks or airdrops, and investment earnings, interest, or rewards on reserve assets.
The Comptroller has custody of the reserve and is responsible for administering and managing it. In that role, the Comptroller may acquire, exchange, sell, supervise, manage, or retain investments using a prudent-investor standard applied to the reserve as a whole. The statute also allows money in the reserve to be invested with the state treasury pool until needed for reserve purposes.
The act uses broader cryptocurrency language, but it places a market-capitalization condition on any bitcoin or other cryptocurrency bought with reserve money. Purchased assets must have an average market capitalization of at least $500 billion over the most recent 24-month period. That threshold limits the reserve to large, established crypto assets unless market conditions change.
SB 21 also addresses operational tools. The Comptroller may spend cryptocurrency or use proceeds from a sale to pay reasonable costs of administering and managing the reserve. The Comptroller may use derivatives if the Comptroller determines that doing so is in the reserve’s best interest. Temporary liquidation and transfers to the state treasury are permitted only for specified cash-management purposes, with transferred money to be returned to the reserve along with any interest earned.
The statute authorizes third-party contracts for reserve administration or management. Those contracts may include a qualified custodian using secure custodial technology, including cold storage, and a qualified liquidity provider to facilitate asset purchases and management. A qualified liquidity provider must satisfy licensing or regulatory, audit, experience, Texas-presence, and certification requirements.
SB 21 creates a five-member Texas Strategic Bitcoin Reserve Advisory Committee. The committee consists of the Comptroller, one member of the Comptroller’s investment advisory board appointed by the Comptroller, and three members with cryptocurrency investment expertise. Its role is advisory: it provides recommendations on reserve valuation and prudent investment policies, including investment objectives and asset allocation.
The act also creates a recurring public-reporting obligation. Not later than December 31 of each even-numbered year, the Comptroller must publish a report on the Comptroller’s website and submit it to the Texas Legislature. The report must cover reserve holdings, estimated monetary value, changes in holdings and value by cryptocurrency type, and administrative actions taken during the preceding state fiscal biennium.
As of June 8, 2026, SB 21 is effective Texas law. Texas Legislature Online lists the final legislative action as “Effective immediately” on June 20, 2025. The enrolled bill text also confirms that the act would take immediate effect if it received the required two-thirds vote in each chamber.
Implementation has continued through the Comptroller’s office. On May 28, 2026, Acting Texas Comptroller Kelly Hancock announced members of the Strategic Bitcoin Reserve Advisory Committee and stated that the office had issued a request for proposals for custody and liquidity services. The Texas SmartBuy listing identifies the solicitation as “Texas Strategic Bitcoin Reserve,” with responses due June 15, 2026.
The Texas Strategic Bitcoin Reserve and Investment Act is best categorized as a state government crypto-holdings statute. Its principal legal effect is to give Texas an internal reserve-management framework for eligible digital assets, overseen by the Comptroller and supported by advisory, custody, procurement, audit, and reporting mechanisms. The law does not, by itself, establish a general crypto exchange licensing framework or set compliance obligations for ordinary crypto users in Texas.
Creates the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury, with custody and management assigned to the Comptroller.
Authorizes the Comptroller to acquire, exchange, sell, supervise, manage, or retain reserve investments using a prudent-investor standard.
Limits reserve-funded purchases to bitcoin or other cryptocurrency with an average market capitalization of at least $500B over the most recent 24 months.
Allows qualified custody and liquidity-provider contracts, secure custodial technology including cold storage, derivatives if in the reserve’s interest, and independent audits.
Creates a five-member advisory committee and requires a public report to the legislature by Dec. 31 of each even-numbered year.
Permits temporary liquidation and transfer to the state treasury for specified cash-management purposes, with return of transferred money and any interest.
SB 21 was filed and received by the Secretary of the Senate.
The Senate passed SB 21 and later adopted the conference committee report.
The House passed SB 21, after amendments, before conference committee action.
The Senate adopted the conference committee report after House adoption on May 29, 2025.
The bill was signed by the governor and became effective immediately.
The Comptroller announced advisory committee members and an RFP for custody and liquidity services.
Texas Comptroller of Public Accounts, Texas Legislature, Texas Treasury Safekeeping Trust Company
Bitcoin, Cryptocurrency
Profile reflects the enrolled SB 21 text, Texas Legislature Online bill history, and Comptroller implementation materials available as of June 8, 2026. It is informational and does not provide legal, tax, investment, or trading advice.
