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.
Key Provisions of Texas SB 21
Reserve assets and market-cap threshold
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.
Comptroller administration and investment authority
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.
- The reserve is outside the state treasury but may invest money with the state treasury pool.
- Transfers from the reserve to the state treasury generally require authorization, subject to a cash-management exception.
- The comptroller may liquidate reserve assets for temporary cash-management transfers and must return transferred money with any interest earned.
Custody, liquidity providers, derivatives, and audits
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.
Governance, Reporting, and Implementation
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.