Crypto Law Profile
Texas SB 21 creates a special fund outside the state treasury for bitcoin and qualifying cryptocurrency, administered by the comptroller with advisory, custody, liquidity, audit, and biennial reporting provisions.
The Texas Strategic Bitcoin Reserve and Investment Act, enacted through Senate Bill 21 in the 89th Texas Legislature, establishes a state-level reserve framework for bitcoin and qualifying cryptocurrency. The enrolled act says it may be cited by that short title and relates to the establishment and administration of the Texas Strategic Bitcoin Reserve, including the investment authority of the Texas Comptroller of Public Accounts over the reserve and certain other state funds. Texas Legislature Online lists the last action as signed by the governor and effective immediately on June 20, 2025.
SB 21 adds Subchapter V to Chapter 403 of the Texas Government Code. The reserve is structured as a special fund outside the state treasury. The comptroller has custody of the reserve and is responsible for administering and managing it. The reserve may consist of legislative appropriations, dedicated revenue, bitcoin and other qualifying cryptocurrency purchased with or received by the reserve, cryptocurrency derived from forks or airdrops to state addresses, and investment earnings, interest, or rewards earned on reserve assets.
The Act does not create a general-purpose cryptocurrency purchasing authority. Cryptocurrency purchased using reserve money must have an average market capitalization of at least $500 billion over the most recent 24-month period. That threshold narrows the practical scope of purchasable assets and is central to the bill's structure as a strategic reserve measure rather than a broad digital-asset investment program.
In managing the reserve, the comptroller may acquire, exchange, sell, supervise, manage, or retain investments under a standard tied to reasonable care, skill, and caution, considering the reserve as a whole rather than a single investment. The legislature may appropriate funds to the reserve for investment and administration, and the comptroller may use cryptocurrency or sale proceeds to pay reasonable reserve administration costs.
SB 21 authorizes third-party contracts for reserve administration and management, including contracts with qualified custodians using secure custodial technologies such as cold storage and qualified liquidity providers. A qualified liquidity provider must satisfy licensing or regulatory status, audited financial statements, at least five years of digital-asset trading experience, a Texas office and registered principal, and certification requirements set by the comptroller. The comptroller may use derivatives when determined to be in the reserve's best interest and may contract for an independent audit.
The Act creates a five-member Texas Strategic Bitcoin Reserve advisory committee made up of the comptroller, one member of the comptroller's investment advisory board, and three members with cryptocurrency investment expertise appointed by the comptroller. The committee advises on asset valuation and prudent investment policies relating to investment objectives and asset allocation. Members serve without compensation or expense reimbursement.
The comptroller must publish on the agency website and submit to the legislature a biennial report by December 31 of each even-numbered year. The report must include the amount of bitcoin and other cryptocurrency held at the end of the prior state fiscal biennium, estimated monetary value, changes in amount and value by cryptocurrency type, and actions taken to administer and manage the reserve.
Implementation is active as of June 3, 2026. The Comptroller's office announced advisory committee appointments on May 28, 2026, and said it issued a request for proposals for custody and liquidity services. Texas SmartBuy lists solicitation 908-26-1778WS, Texas Strategic Bitcoin Reserve, as posted on May 7, 2026, with responses due June 15, 2026. Primary source materials include the enrolled text, the bill history, and Comptroller implementation notices. This profile is for legal-reference purposes only and does not provide legal, tax, investment, or trading advice.
The Act establishes the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury, with custody, administration, and management assigned to the comptroller.
Cryptocurrency purchased using reserve money must have an average market capitalization of at least $500 billion over the most recent 24 months.
The comptroller may acquire, exchange, sell, supervise, manage, or retain reserve investments under a prudent-investor-style standard.
The comptroller may contract with qualified custodians using secure custodial technologies, including cold storage, and with qualified liquidity providers.
A five-member advisory committee advises the comptroller on valuation, risk, digital asset management, custody, and investment policy.
The comptroller must publish and submit a biennial report by Dec. 31 of each even-numbered year covering reserve holdings, value changes, and management actions.
SB 21 was filed in the Senate for the 89th Regular Session.
Senate passed SB 21, 25-5, before sending it to the House.
House passed SB 21 with amendments, 101-42, with two present not voting.
Conference report adopted by both chambers; the House vote was 110-25 and the Senate vote was 23-8.
Governor signed SB 21; Texas Legislature Online lists the bill as effective immediately.
Comptroller Manual of Accounts lists Fund 1018, Texas Strategic Bitcoin Reserve, with a June 25, 2025 issue date.
Acting Comptroller Kelly Hancock named advisory committee members and announced an RFP for custody and liquidity services.
Qualified custodians, Qualified liquidity providers
Bitcoin, Cryptocurrency
As of June 3, 2026, SB 21 is enacted and effective. Implementation remains active through Comptroller appointments, procurement for custody and liquidity services, and future biennial reporting.
