The post Texas Protects Its Bitcoin Holdings With New Law appeared first on Coinpedia Fintech News
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.
Update: Texas has passed a law securing off-treasury $BTC reserves, with a key decision on SB21 potentially allowing the state to buy #Bitcoin, set for June 22.#CoinPedia #CryptoNews #Blockchain #CryptoMarket pic.twitter.com/jS0eJluyH9
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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.
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FAQs
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.
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.
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.
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.
