Texas Goes Full Hodl: State Clears Path for Bitcoin Reserve Fund

Texas just bulldozed the last regulatory roadblock to creating a state-backed Bitcoin reserve fund—because why let the Fed have all the fun?

The Lone Star Playbook

No more waiting, no more hand-wringing. The bill’s passage means Texas can now allocate treasury reserves into BTC, joining the ranks of crypto-forward governments (and leaving Wall Street banks sweating over their legacy balance sheets).

Cue the Institutional Domino Effect

With Texas diving in, pressure mounts on other states to follow suit—or risk looking like monetary dinosaurs. Because nothing says ’financial innovation’ like watching politicians FOMO into digital assets.

*Closing thought: If this triggers a 2025 state-level Bitcoin arms race, remember—you heard it here first. And no, your CFA won’t help you now.*

Enhanced provisions added through legislative process

The final version incorporates several amendments that emerged during House deliberations. This includes authorization for the Comptroller to engage qualified liquidity providers and expand the fund’s financial capabilities. Legislative negotiators made major modifications to the original proposal during conference committee discussions.

A key revision extends the duration requirement for eligible cryptocurrencies from 12 months to 24 months. This means altcoins must maintain a minimum market capitalization of $500 billion for two full years before qualifying for inclusion in the reserve.

Members of the conference committee declined to allow the Comptroller to use reserve assets for lending or staking. In addition, they removed clauses that would have allowed voluntary cryptocurrency contributions to the fund.

The legislation positions Texas to become the third state to establish an official Bitcoin reserve. This is following pioneering efforts by New Hampshire and Arizona. The development shows a growing trend among state governments exploring cryptocurrency as a tool for financial diversification and economic resilience.

New Hampshire’s framework served as a reference point for Texas legislators, particularly regarding the methodology for evaluating and incorporating additional digital assets beyond Bitcoinnto state reserves.

The $500 billion market capitalization threshold represents one of the most stringent requirements among state-level cryptocurrency initiatives. With a number of mining operations and blockchain startups establishing significant presences within state borders, Texas has established itself as a leader in the adoption of cryptocurrencies.