Texas Governor Greg Abbott has signed House Bill 4488, which protects Bitcoin reserves held outside the state treasury.
Signing of Bill HB 4488
On June 21, 2025, Texas Governor Greg Abbott signed House Bill 4488, which protects certain state funds, including Bitcoin reserves held outside the state treasury. This move highlights Texas’s ambition to become a crypto hub, especially as Riot Platforms mined 20% of U.S. Bitcoin in 2023.
Potential Bill SB21
Senate Bill 21 is currently under review, with a deadline for a decision on June 22, 2025. If signed, SB21 would authorize Texas to invest in cryptocurrencies with a market cap exceeding $500 billion, currently met only by Bitcoin. This aligns with a 2024 National Bureau of Economic Research study suggesting that diversifying state portfolios with Bitcoin could hedge against inflation.
The Future of Cryptocurrency in Texas
The signing of HB 4488 comes amid U.S. regulatory uncertainty, contrasting with El Salvador’s 2021 adoption of Bitcoin as legal tender. However, challenges remain, including custody and transparency concerns raised by financial institutions. As Texas weighs its next steps, the world watches—could the Lone Star State lead a new era of Bitcoin as a strategic reserve asset?
Thus, Texas's actions may represent a significant step forward in developing the cryptocurrency economy in the U.S. and beyond, indicating potential changes in the approach to using digital assets in state financial systems.
