Texas Establishes Strategic Bitcoin Reserve, Eyes Ethereum as Potential Addition

According to Cointelegraph, Texas has taken a significant step in the cryptocurrency realm by passing a law to establish a strategic Bitcoin reserve. This initiative, signed into law by Governor Greg Abbott in June, positions Texas as a pioneer in adopting digital assets as part of its financial strategy. The law allows for the inclusion of other cryptocurrencies in a special fund outside the state treasury, with Bitcoin currently being the sole asset meeting the criteria. Texas state Senator Charles Schwertner, the original sponsor of the bill, expressed interest in the potential expansion of the reserve to include Ethereum. Schwertner noted that if Ethereum maintains its market capitalization over a 24-month period, it could be considered a prudent addition to the reserve. The law stipulates that any cryptocurrency must have an average market capitalization of at least $500 billion over the most recent 24-month period to qualify as a reserve asset. Bitcoin, with a market capitalization exceeding $2 trillion, comfortably meets this requirement. In contrast, Ethereum has only surpassed the $500 billion mark twice, briefly in 2021 and intermittently from August to October this year. The establishment of Texas' Bitcoin reserve sets it apart from other states, many of which have not advanced similar legislation. Arizona and New Hampshire are exceptions, having signed laws in 2025 to create crypto reserves. Arizona's fund includes assets seized through criminal forfeiture, while New Hampshire's law permits the state treasury to invest in cryptocurrencies with a market cap exceeding $500 billion. Senator Schwertner emphasized Texas' unique approach, highlighting that the state has committed sovereign taxpayer money to the reserve, a move not mirrored by other states. The implementation of the law is under review by the state comptroller, who is considering custodians for the reserve's holdings. The law mandates that any custodian must be a state or federally chartered financial institution or another entity regulated within Texas. This development follows the federal government's initiative under U.S. President Donald Trump, who established both a Strategic Bitcoin Reserve and a Digital Asset Stockpile in March. The executive order outlined policies to utilize confiscated cryptocurrencies to fund the reserve, with officials later identifying budget-neutral methods to acquire Bitcoin.