Ethereum News Today: "Texas Reserve's $500B Test: Ethereum's Stability Bid for Sovereign Spot"

Texas lawmakers have signaled that Ether could be added to the state's Strategic Bitcoin Reserve if Ethereum maintains a 24-month average market capitalization of at least $500 billion. The provision, outlined in legislation signed into law in 2025, currently qualifies only Bitcoin for inclusion, as Ether's recent market cap dipped below the threshold Texas lawmaker behind state’s crypto reserve bill: Ether may be next^[1].

The Texas Strategic Bitcoin Reserve, established under Senate Bill 21, allows for the inclusion of additional cryptocurrencies that meet the 24-month market cap requirement. Texas state Senator Charles Schwertner, the bill's original sponsor, stated that Ethereum's sustained compliance with this criterion would make it a "reasonable and prudent" candidate for the reserve Texas lawmaker behind state’s crypto reserve bill: Ether may be next^[1]. Historical data from CoinGecko and yCharts show that Ether has only exceeded $500 billion in market cap intermittently, including brief periods in 2021 and sporadically in 2024–2025 Ethereum USD Historical Data | CoinGecko^[2]Ethereum Market Cap (Daily) - Historical Data & Trends …^[3]. A recent price decline on Friday pushed Ethereum's market cap to approximately $494 billion, falling short of the required threshold Texas lawmaker behind state’s crypto reserve bill: Ether may be next^[1].

Under the law, the Texas Comptroller of Public Accounts will oversee the implementation of any additions to the reserve, including selecting custodians that are state- or federally chartered financial institutions Texas lawmaker behind state’s crypto reserve bill: Ether may be next^[1]. The 24-month average rule is designed to ensure that assets added to the reserve demonstrate sustained liquidity and scale, reducing exposure to volatility .

Texas's approach differs from other states that have enacted similar measures. Arizona's reserve is funded through seized crypto assets, while New Hampshire permits treasury investments in qualifying cryptocurrencies. Texas's reserve, however, is uniquely funded with sovereign funds allocated for strategic purposes Texas Signs Bitcoin Reserve Bill Into Law: What It Means^[5]. The law also includes safeguards such as HB 4488, which prevents reserve funds from being redirected to general state budgets .

For Ether investors, the immediate outlook hinges on its ability to stabilize and maintain a 24-month average market cap above $500 billion. Analysts note that any inclusion would require a prolonged period of market stability rather than short-term price rebounds . The state comptroller will determine custodial and operational frameworks before any purchases proceed Texas lawmaker behind state’s crypto reserve bill: Ether may be next^[1].

The development reflects broader trends in U.S. crypto policy, where states are increasingly exploring digital assets as part of their financial strategies. However, the high bar for eligibility ensures that only the largest and most established cryptocurrencies qualify for state-backed reserves Texas Signs Bitcoin Reserve Bill Into Law: What It Means^[5].