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Texas Protects Its Bitcoin Holdings With New Law

Published by
Debashree Patra and Sohrab Khawas

Texas Governor Greg Abbott just signed a new law (House Bill 4488) that protects the state’s Bitcoin reserves and other crypto holdings. Without this law, these funds might have been forced to be sold off in 2025. Now, they’re safe and won’t be treated like regular government money. This shows that Texas is serious about using and protecting cryptocurrency as part of its official financial plans. 

Bitcoin Investment Bill Awaits Abbott’s Decision

While HB 4488 is now law, all eyes are on Senate Bill 21 (SB21), which proposes allowing Texas to invest directly in Bitcoin and other cryptocurrencies with market caps over $500 billion. At present, only Bitcoin qualifies, making it the prime candidate for state investment. Governor Abbott has until June 22 to sign or veto SB21. If he takes no action, the bill will become law automatically.

SB21 would mark a major milestone in crypto adoption at the state level, aligning Texas with a growing number of institutions that view Bitcoin as a strategic reserve asset.

Institutional Momentum Builds Around Bitcoin

Governor Abbott’s steps mirror a broader institutional trend. Hedge fund manager Eric Semler, who chairs healthcare firm Semler Scientific, has been vocal in his support of Bitcoin as a long-term investment. Semler’s firm recently increased its Bitcoin holdings, reinforcing the view that crypto is gaining ground as a store of value.

His popular approach, investing in what most don’t, has paid off historically, especially in turbulent markets. Semler’s confidence in Bitcoin also echoes the sentiment of a growing number of hedge funds; recent data shows nearly half now have some crypto exposure.

Texas is Sending a Message

The passage of HB 4488 shows that Texas is serious about protecting its crypto reserves. If SB21 follows, the state could become one of the first to officially invest in Bitcoin. Together, these two bills reflect a calculated but forward-looking approach. For investors and institutions watching from the sidelines, Texas might be the place where crypto meets government policy and gets taken seriously.

FAQs

How likely is SB21 to become law and what would it mean for Texas crypto investments?

SB21 is highly likely to become law as Governor Abbott’s deadline is June 22, 2025, and inaction means automatic passage. It would enable Texas to directly invest in Bitcoin, creating a state-managed reserve.

What are the potential risks of Texas holding Bitcoin as a strategic reserve outside traditional assets?

Potential risks include Bitcoin’s high volatility, regulatory uncertainty, and cybersecurity threats. Critics also question whether government involvement in speculative assets aligns with prudent fiscal policy.

Why is only Bitcoin currently qualifying for Texas’s proposed investment bill and could Ethereum join later?

Only Bitcoin currently qualifies because SB21 requires a minimum 12-month average market capitalization of $500 billion. Ethereum could join later if its market cap consistently meets this threshold.

What impact might Texas’s crypto policies have on institutional interest in Bitcoin?

Texas’s proactive crypto policies could significantly boost institutional interest in Bitcoin by legitimizing it as a reserve asset, potentially encouraging other states and large entities to follow suit.

Debashree Patra and Sohrab Khawas

Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

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