Texas Governor Greg Abbott has signed HB 4488, which protects Bitcoin reserves managed outside the state treasury. This legislation classifies these assets as special-purpose funds, ensuring they are not automatically dissolved in 2025.
HB 4488: Protecting Bitcoin Reserves
The newly signed law HB 4488 provides legal protection for Bitcoin assets and prevents their automatic dissolution. It ensures that Bitcoin reserves remain under state control and are not liquidated.
SB21: A Pivotal Decision for Texas
All eyes are now on Senate Bill 21 (SB21), which proposes the creation of the 'Texas Strategic Bitcoin Reserve.' The bill gives the state’s Comptroller the authority to invest in Bitcoin and other cryptocurrencies with an average market capitalization of at least $500 billion for 12 months. If not vetoed or signed by June 22, the bill will automatically become law. SB21 includes safeguards such as cold storage requirements and allows staking and derivatives strategies.
Significance of New Measures
Texas could become one of the first U.S. states to legally manage crypto assets as part of its strategic reserves. The passage of HB 4488 and SB21 signals a strong confidence in Bitcoin’s long-term value. However, critics raise concerns about the volatility of the crypto market and the challenges of managing speculative assets with taxpayer money.
Governor Abbott’s decision on SB21 is expected by June 22. If the bill is enacted, Texas will officially join a select group of jurisdictions actively managing Bitcoin as a sovereign reserve asset.
