Texas Protects State Bitcoin Reserve With New Law Signed Into Law

• Texas Approves Legal Protection for Bitcoin Reserve
• State law secures funds outside the treasury
• Bitcoin could become a permanent fund if SB21 is signed into law

Texas Governor Greg Abbott, sanctioned House Bill 4488 (HB4488), which would provide a legal shield for certain state funds, including a potential strategic Bitcoin reserve. The measure prevents these funds from being automatically transferred to the state’s general revenue, even if they are outside the state treasury.

#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. Thats 2 days away.

Texas Governor Greg Abbott has passed House… pic.twitter.com/jOdVhBKq1M

— MartyParty (@martypartymusic) June 21, 2025

The legislation comes as a preemptive safeguard against the possible creation of a Bitcoin reserve, previously proposed by Texas lawmakers. The funds covered by the new law also include the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account. These funds may be structured as separate entities, depending on the legislation that establishes them, while maintaining their autonomy and original purpose.

Despite the approval of HB4488, the effective creation of the Bitcoin reserve still depends on the approval of Senate Bill 21 (SB21), which would allow the state to invest in crypto assets with a market value exceeding US$500 billion — currently, only Bitcoin meets this criterion. The proposal authorizes the direct acquisition of these assets as a way of diversifying and preserving public capital.

Governor Abbott has until June 22 to decide whether to sign or veto SB21. Under Texas legislative rules, the 20-business-day deadline was given because of the proximity to the end of the legislative session. If no action is taken within that time, the bill will automatically become law.

The passage of HB4488 signals a strategic move by the state, which seeks to solidify a legal framework for cryptocurrency-related initiatives, anticipating possible legislative developments. Texas has previously shown interest in leading efforts towards institutional adoption of Bitcoin, being one of the states with the largest presence of crypto mining infrastructure in the United States.