Bitcoin News Today: Texas Vaults Digital Gold, Eyes Ether's Comeback

Texas Enacts Bitcoin Reserve, Eyes Ether Next If Criteria Met

The State of Texas has become the third U.S. jurisdiction to establish a strategic Bitcoin reserve, following Arizona and New Hampshire, after Governor Greg Abbott signed Senate Bill 21 (SB 21) into law on June 22, 2025. The legislation, introduced by Senator Charles Schwertner and co-authored by Representative Giovanni Capriglione, authorizes the Texas Comptroller of Public Accounts to allocate state funds for purchasing and managing cryptocurrencies with an average market capitalization of at least $500 billion over the past 24 months. Bitcoin, currently valued at over $2 trillion, is the only asset meeting this threshold.

The Texas Strategic Bitcoin Reserve operates as a special fund outside the state treasury, funded through legislative appropriations, investment proceeds, and voluntary donations. Initial investments are estimated in the tens of millions, with assets stored in cold storage for security. The reserve requires biennial reporting on holdings and administrative actions, ensuring transparency while mitigating risks from market volatility Texas Strategic Bitcoin Reserve - Wikipedia^[1].

Texas's move aligns with broader national trends, including President Donald Trump's January 2025 executive order establishing a federal strategic Bitcoin reserve study. The state's reserve has bipartisan support, passing the Senate 25–5 in March 2025 and the House 101–42 in May 2025. Advocates, including the Texas Blockchain Council, argue the initiative enhances financial resilience and positions Texas as a leader in digital asset innovation Strategic Bitcoin Reserve Bill Clears Texas Legislature^[2].

Critics, however, highlight Bitcoin's price volatility as a risk to public funds, particularly given its recent peak of $111,861.22 and subsequent fluctuations. Texas Policy Research notes the fiscal impact remains indeterminate due to market dynamics, though the bill's market-cap threshold aims to limit exposure to unstable assets Texas House Approves SB 21, Paving Way for State …^[3].

While Bitcoin is the sole qualifying asset under current market conditions, SB 21 leaves room for future additions. Senator Schwertner, the bill's sponsor, stated that Ethereum (ETH) could be considered if it maintains a 24-month average market capitalization above $500 billion. As of late October 2025, ETH's market cap dipped to $494 billion following a price decline, temporarily disqualifying it from inclusion Texas lawmaker behind state’s crypto reserve bill: Ether may be next^[4].

Schwertner emphasized that the state comptroller would review custodial and operational procedures before any Ether purchases. The Texas Comptroller must select a custodian regulated in Texas, ensuring compliance with the law's security and transparency requirements Ether Could Be Added to Texas Strategic Bitcoin Reserve If Market …^[5]. This approach mirrors federal and state precedents, including New Hampshire's crypto reserve, which permits investments in assets meeting the same market-cap threshold Texas Strategic Bitcoin Reserve: What It Is and What It …^[6].

Texas's reserve distinguishes itself by directly allocating sovereign funds, unlike Arizona's reserve, which uses seized crypto assets. The state's strategic focus on high-market-cap cryptocurrencies reflects a cautious yet forward-looking approach, balancing innovation with risk management.

The bill's passage underscores Texas's broader pro-crypto agenda, including HB 591 (2023), which incentivizes Bitcoin mining with stranded natural gas, and SB 29 (2025), which modernized business regulations. These initiatives reinforce Texas's reputation as a business-friendly hub, with the Texas Stock Exchange planning a 2026 launch to further solidify its financial leadership Texas Launches Bitcoin Reserve, Expands Pro …^[7].

The Texas Comptroller is currently finalizing implementation details, including custodial arrangements and investment timelines. Schwertner noted that the speed of reserve establishment and its financial performance will determine future actions, including potential Ether inclusion.

As other states and countries observe Texas's experiment, the Lone Star State's approach could influence national and global cryptocurrency policy. However, success will depend on maintaining market stability, regulatory clarity, and public confidence in the face of ongoing volatility Texas Senate Passes Historic Bitcoin Strategic Reserve Bill (SB-21 …)^[8].