SB21

Regular Session

Relating to the establishment and administration of the Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Comptroller of Public Accounts

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: Q1 2026 (Estimated). While the law is effective in September, vendors cannot be contracted until the Comptroller adopts specific certification rules. Full compliance with "Qualified Liquidity Provider" status is a prerequisite to bid on RFPs expected in early 2026.
Agency Rulemaking: The Comptroller of Public Accounts is mandated to adopt rules "as soon as possible" after September 1, 2025.
*Regulatory Gray Zone:* Q4 2025 will be critical. The Comptroller will define the specific methodologies for asset valuation and the certification process during this window.

Immediate Action Plan

Verify Eligibility: Immediately confirm your firm has five years of verifiable trading history. This is a statutory hard stop; startups are disqualified.
Establish Nexus: If you lack a Texas office, begin the registration and leasing process immediately to ensure a "Registered Principal" is in place by Q4 2025.
Audit "Cold Storage": Review your custodial architecture against Sec. 403.701(3). If your private keys have *any* internet connectivity, you are non-compliant.
Prepare Nominees: Identify qualified candidates for the three external seats on the Texas Strategic Bitcoin Reserve Advisory Committee and prepare nomination packets for the Comptroller.

Operational Changes Required

Contracts

Master Services Agreements (MSAs): Vendors must amend MSAs to include representations and warranties confirming a physical Texas presence and a registered principal in the state.
Service Level Agreements (SLAs): Liquidity providers must agree to strict settlement timelines to meet the Comptroller's statutory authority to liquidate assets "as necessary" for cash management.
Indemnification: Custodians must accept liability for breaches of the "cold storage" standard, specifically regarding internet isolation.

Hiring/Training

Registered Principal: Liquidity providers must hire or designate a registered principal physically located in Texas if one does not currently exist.
Technical Operations: Custodial staff must be trained on new workflows for handling "Forks" and "Airdrops," as the law explicitly permits the state to retain assets derived from these events.

Reporting & Record-Keeping

Statutory Certification: Vendors must prepare a certification package proving:
1. Five years of continuous experience in digital asset trading.
2. Audited financial statements.
3. Licensure under state/federal law.
Asset Segregation: Custodians must structurally segregate Reserve assets from general treasury pools. Commingling that violates the statutory definition of "cold storage" is prohibited.

Fees & Costs

Audit Expenses: Vendors should budget for increased external audit costs, as the state will require independent verification of asset existence on the blockchain.
Infrastructure Costs: Potential capital expenditure for custodians to meet the strict "no internet nexus" requirement for private key storage if current systems utilize "warm" wallet architecture.

Strategic Ambiguities & Considerations

*Watch the Texas Register closely for Comptroller rulemaking on these items:*

1. "Average Market Capitalization": The statute limits purchases to assets with a $500B market cap over the last 12 months. Currently, only Bitcoin qualifies. Rulemaking will define the data source and calculation method (e.g., daily close vs. intraday average), which will determine if/when assets like Ethereum become eligible.
2. "Secure Physical Location": The law requires cold storage to have a nexus to a secure physical location. It is unclear if this mandates the physical servers/vaults be located *within Texas borders* or simply within the custodian's secure network.
3. Derivatives Limits: The law permits derivatives for "prudent" investment. Rulemaking will likely draw a hard line between permissible hedging and prohibited speculation.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsFinancial Financial--general State Finances State Finances--management & Control Texas Strategic Bitcoin Reserve and Investment Act Currency & Currency Exchange Comptroller of Public Accounts Texas Strategic Bitcoin Reserve Advisory Committee Audits & Auditors

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 21
89R12465 SRA-F	By: Schwertner
	Business & Commerce
	2/14/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Bitcoin, referred to as "digital gold" by the United States Treasury, has become a recognized asset in the financial markets because of its limited supply and decentralized nature. An increasing number of states and sovereign nations are now proposing plans for a Strategic Bitcoin Reserve. Like gold, which has long served as a financial safeguard, Bitcoin offers unique advantages in the digital era, making it a critical asset for the future.

S.B. 21 creates the Texas Strategic Bitcoin Reserve as a special fund managed by the Comptroller of Public Accounts of the State of Texas. S.B. 21 authorizes the comptroller to acquire, exchange, sell, manage, and retain investments of bitcoin and other cryptocurrency with a market capitalization of at least $500 billion, accept donations of Bitcoin and other cryptocurrency, contract with qualified providers to assist in the administration and management of the reserve, including a custodian to assist in the safeguarding of assets. The bill also creates a Strategic Bitcoin Reserve Advisory Committee to provide guidance and recommendations for administrating the reserve, and requires a biennial report detailing the reserve, be submitted to the legislature and published online for public access.

S.B. 21 allows Texas to diversify its investment approach and participate competitively in the evolving digital economy. By adopting its own Bitcoin reserve, Texas can establish itself as the early leader and model for leveraging the benefits of this emerging asset.

As proposed, S.B. 21 amends current law relating to the establishment and administration of the Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Comptroller of Public Accounts of the State of Texas in SECTION 2 (Section 403.710, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Authorizes this Act to be cited as the Texas Strategic Bitcoin Reserve and Investment Act.

SECTION 2. Amends Chapter 403, Government Code, by adding Subchapter V, as follows:

SUBCHAPTER V. TEXAS STRATEGIC BITCOIN RESERVE

Sec. 403.701. DEFINITIONS. Defines "airdrop," "bitcoin," "cold storage," "cryptocurrency," "fork," "qualified custodian," "reserve," and "virtual currency."

Sec. 403.702. LEGISLATIVE FINDINGS; PURPOSE. Provides that the legislature finds that bitcoin and other cryptocurrencies are assets with strategic potential for enhancing this state's financial resilience, bitcoin and other cryptocurrencies can serve as a hedge against inflation and economic volatility, and the establishment of a strategic bitcoin reserve serves the public purpose of providing enhanced financial security to residents of this state and providing a mechanism to receive donations of bitcoin and other cryptocurrencies.

Sec. 403.703. ESTABLISHMENT AND ADMINISTRATION OF RESERVE. (a) Provides that the Texas Strategic Bitcoin Reserve (reserve) is established as a special fund outside the state treasury. Provides that the Comptroller of Public Accounts of the State of Texas (comptroller) has custody of and is required to administer and manage the reserve. Provides that the reserve consists of:

(1) money transferred or deposited to the credit of the reserve by legislative appropriation;

(2) revenue that the legislature by general law dedicates for deposit to the credit of the reserve;

(3) subject to Section 403.704, bitcoin and other cryptocurrency purchased using money in or received by the reserve, including any cryptocurrency derived from the fork of a distributed ledger or distributed pursuant to an airdrop to the state's cryptocurrency addresses;

(4) investment earnings and interest or rewards earned on assets in the reserve; and

(5) gifts, grants, and other donations to the reserve.

(b) Authorizes the comptroller, in its administration and management of the reserve, to acquire, exchange, sell, supervise, manage, or retain any kind of investment that a prudent investor exercising reasonable care, skill, and caution would acquire, exchange, sell, supervise, manage, or retain in light of the purposes, terms, distribution requirements, and other circumstances then prevailing for the reserve, taking into consideration the investment of all the assets of the reserve rather than a single investment.

(c) Authorizes the legislature to appropriate funds for deposit to the credit of the reserve for the purposes of investing in bitcoin or other cryptocurrency and administering and managing the reserve.

(d) Authorizes the comptroller to spend bitcoin or other cryptocurrency in the reserve or use the net proceeds from the sale of bitcoin or other cryptocurrency in the reserve to pay the reasonable costs associated with administering and managing the reserve.

(e) Authorizes money in the reserve to be invested with the state treasury pool.

(f) Prohibits the comptroller, except as provided by Section 403.707, from transferring money in the reserve to the state treasury unless authorized by the legislature in the General Appropriations Act or another law.

Sec. 403.704. MARKET CAPITALIZATION REQUIREMENT. Requires that bitcoin or other cryptocurrency purchased using money in the reserve or received by the reserve have an average market capitalization of at least $500 billion over the most recent 12-month period.

Sec. 403.705. THIRD-PARTY CONTRACTS; AUDITS. (a) Authorizes the comptroller to contract with one or more third-party entities for the administration or management of the reserve, including contracting with a qualified custodian who employs secure custodial technologies, including cold storage.

(b) Authorizes the comptroller to contract with a certified public accountant to perform an independent audit of the reserve.

Sec. 403.706. VOLUNTARY DONATION OF BITCOIN OR OTHER CRYPTOCURRENCY TO RESERVE. (a) Authorizes the comptroller, subject to applicable law, including Section 403.704, to accept a gift, grant, or other donation of bitcoin or other cryptocurrency to the reserve from any public or private source.

(b) Prohibits a donor from limiting or directing the investment or use of bitcoin or other cryptocurrency donated to the reserve.

(c) Authorizes the comptroller to require information from a person who donates or offers to make a donation to the reserve and to reject or return a donation made to the reserve for any reason. Requires the comptroller, subject to applicable law, to return a donation rejected after it is deposited to the reserve, net of any costs related to the donation incurred by the comptroller during the period the donation was in the reserve.

Sec. 403.707. TEMPORARY TRANSFER FOR CASH MANAGEMENT. (a) Authorizes the comptroller to liquidate the reserve's assets and temporarily transfer money from the reserve to the state treasury if necessary for the purposes described by Section 403.092 (Temporary Transfer of Surplus and Other Cash).

(b) Requires the comptroller, as soon as practicable after the date of a transfer under Subsection (a), to return the transferred money to the reserve along with the interest, if any, earned on the money while held in the state treasury.

Sec. 403.708. TEXAS STRATEGIC BITCOIN RESERVE ADVISORY COMMITTEE. (a) Defines "committee."

(b) Provides that reserve advisory committee (committee) is composed of the following five members: the comptroller; one member of the comptroller's investment advisory board established under Section 404.028 (Investment Advisory Board), appointed by the comptroller; and three members with expertise in cryptocurrency investments, appointed by the comptroller.

(c) Requires the committee to advise the comptroller regarding the administration and management of the reserve, including recommendations for valuing assets in the reserve and the establishment of prudent investment policies relating to the investment objectives of and asset allocation in the reserve.

(d) Provides that a member of the committee is not entitled to receive compensation for service on the committee or reimbursement for expenses incurred in the performance of official duties as a member of the committee.

(e) Provides that members of the committee appointed by the comptroller serve at the will of the comptroller.

(f) Provides that Chapter 2110 (State Agency Advisory Committees) does not apply to the committee.

Sec. 403.709. BIENNIAL REPORT. Requires the comptroller, not later than December 31 of each even-numbered year, to publish on the comptroller's Internet website and submit to the legislature a report that includes:

(1) the amount of bitcoin and other cryptocurrency held in the reserve on the last day of the preceding state fiscal biennium;

(2) an estimate of the monetary value of the bitcoin and other cryptocurrency held in the reserve on the last day of the preceding state fiscal biennium;

(3) the changes, if any, in the amount and estimated monetary value of bitcoin and other cryptocurrency in the reserve during the period the cryptocurrency has been held in the reserve, disaggregated by cryptocurrency type; and

(4) a description of the actions taken by the comptroller to administer and manage the reserve during the preceding state fiscal biennium.

Sec. 403.710. RULES. Authorizes the comptroller to adopt rules as necessary to administer this subchapter.

SECTION 3. Amends Section 2256.004(a), Government Code, to provide that Subchapter A (Authorized Investments for Governmental Entities), Chapter 2256 (Public Funds Investment), does not apply to certain entities, funds, and monies, including state funds invested by the comptroller, rather than state funds invested as authorized by Section 404.024 (Authorized Investments).

SECTION 4. Requires the comptroller, as soon as possible after the effective date of this Act, to adopt rules as necessary to implement this Act and appoint members to the committee as required by Section 403.708, Government Code, as added by this Act.

SECTION 5. Effective date: upon passage or September 1, 2025.

Bill Text(with markup)

S.B. No. 21

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the establishment and administration of the Texas
	Strategic Bitcoin Reserve for the purpose of investing in
	cryptocurrency and the investment authority of the comptroller of
	public accounts over the reserve and certain other state funds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. This Act may be cited as the Texas Strategic
	Bitcoin Reserve and Investment Act.
	SECTION 2. Chapter 403, Government Code, is amended by
	adding Subchapter V to read as follows:
	SUBCHAPTER V. TEXAS STRATEGIC BITCOIN RESERVE
	Sec. 403.701. DEFINITIONS. In this subchapter:
	(1) "Airdrop" means a gratuitous distribution of
	cryptocurrency to persons who hold cryptocurrency, generally made
	in a broad, equitable, and nondiscretionary manner.
	(2) "Bitcoin" means a type of decentralized
	cryptocurrency created by a peer-to-peer network that operates
	independently of any central authority or bank.
	(3) "Cold storage" means a method of storing private
	keys required to engage in transactions involving cryptocurrency
	that:
	(A) has a nexus to a secure physical location;
	(B) is protected from unauthorized access; and
	(C) is isolated from any Internet network
	connections.
	(4) "Cryptocurrency" means a type of virtual currency
	that utilizes cryptography to secure transactions that are
	digitally recorded on a distributed ledger, such as a blockchain.
	(5) "Fork" means a change to the consensus mechanism
	of a distributed ledger that creates a separate ledger, which may
	result in a new cryptocurrency that shares a common transaction
	history with the previous cryptocurrency up to the point of the
	change.
	(6) "Qualified custodian" means a state or federally
	chartered financial institution or other entity regulated by this
	state that has custody of a virtual currency.
	(7) "Reserve" means the Texas Strategic Bitcoin
	Reserve established under this subchapter.
	(8) "Virtual currency" has the meaning assigned by
	Section 12.001, Business & Commerce Code.
	Sec. 403.702. LEGISLATIVE FINDINGS; PURPOSE. The
	legislature finds that:
	(1) bitcoin and other cryptocurrencies are assets with
	strategic potential for enhancing this state's financial
	resilience;
	(2) bitcoin and other cryptocurrencies can serve as a
	hedge against inflation and economic volatility; and
	(3) the establishment of a strategic bitcoin reserve
	serves the public purpose of providing enhanced financial security
	to residents of this state.
	Sec. 403.703. ESTABLISHMENT AND ADMINISTRATION OF RESERVE.
	(a) The Texas Strategic Bitcoin Reserve is established as a special
	fund outside the state treasury. The comptroller has custody of and
	shall administer and manage the reserve. The reserve consists of:
	(1) money transferred or deposited to the credit of
	the reserve by legislative appropriation;
	(2) revenue that the legislature by general law
	dedicates for deposit to the credit of the reserve;
	(3) subject to Section 403.704, bitcoin and other
	cryptocurrency purchased using money in or received by the reserve,
	including any cryptocurrency:
	(A) derived from the fork of a distributed
	ledger; or
	(B) distributed pursuant to an airdrop to the
	state's cryptocurrency addresses; and
	(4) investment earnings and interest or rewards earned
	on assets in the reserve.
	(b) In its administration and management of the reserve, the
	comptroller may acquire, exchange, sell, supervise, manage, or
	retain any kind of investment that a prudent investor exercising
	reasonable care, skill, and caution would acquire, exchange, sell,
	supervise, manage, or retain in light of the purposes, terms,
	distribution requirements, and other circumstances then prevailing
	for the reserve, taking into consideration the investment of all
	the assets of the reserve rather than a single investment.
	(c) The legislature may appropriate funds for deposit to the
	credit of the reserve for the purposes of:
	(1) investing in bitcoin or other cryptocurrency; and
	(2) administering and managing the reserve.
	(d) The comptroller may spend bitcoin or other
	cryptocurrency in the reserve or use the net proceeds from the sale
	of bitcoin or other cryptocurrency in the reserve to pay the
	reasonable costs associated with administering and managing the
	reserve.
	(e) Money in the reserve may be invested with the state
	treasury pool.
	(f) Except as provided by Section 403.706, the comptroller
	may not transfer money in the reserve to the state treasury unless
	authorized by the legislature in the General Appropriations Act or
	another law.
	Sec. 403.704. MARKET CAPITALIZATION REQUIREMENT. Bitcoin
	or other cryptocurrency purchased using money in the reserve must
	have an average market capitalization of at least $500 billion over
	the most recent 24-month period.
	Sec. 403.705. THIRD-PARTY CONTRACTS AND PERMISSIBLE
	TRANSACTIONS; AUDITS. (a) The comptroller may contract with one or
	more third-party entities for the administration or management of
	the reserve, including contracting with:
	(1) a qualified custodian who employs secure custodial
	technologies, including cold storage; and
	(2) a qualified liquidity provider to facilitate the
	purchase and management of assets in the reserve.
	(b) For purposes of Subsection (a)(2), "qualified liquidity
	provider" means an entity that:
	(1) is licensed or regulated under applicable federal
	or state law;
	(2) maintains audited financial statements prepared
	by a regulated auditor;
	(3) has at least five years of experience trading in
	the digital assets industry;
	(4) maintains an office and has a registered principal
	in this state; and
	(5) has certified in a method prescribed by the
	comptroller that the provider meets the requirements of
	Subdivisions (1)-(4).
	(c) If the comptroller determines it is in the best interest
	of the reserve, the comptroller may use derivatives.
	(d) The comptroller may contract with a certified public
	accountant to perform an independent audit of the reserve.
	Sec. 403.706. TEMPORARY TRANSFER FOR CASH MANAGEMENT. (a)
	The comptroller may liquidate the reserve's assets and temporarily
	transfer money from the reserve to the state treasury if necessary
	for the purposes described by Section 403.092.
	(b) The comptroller shall, as soon as practicable after the
	date of a transfer under Subsection (a), return the transferred
	money to the reserve along with the interest, if any, earned on the
	money while held in the state treasury.
	Sec. 403.707. TEXAS STRATEGIC BITCOIN RESERVE ADVISORY
	COMMITTEE. (a) In this section, "committee" means the Texas
	Strategic Bitcoin Reserve advisory committee.
	(b) The committee is composed of the following five members:
	(1) the comptroller;
	(2) one member of the comptroller's investment
	advisory board established under Section 404.028, appointed by the
	comptroller; and
	(3) three members with expertise in cryptocurrency
	investments, appointed by the comptroller.
	(c) The committee shall advise the comptroller regarding
	the administration and management of the reserve, including:
	(1) recommendations for valuing assets in the reserve;
	and
	(2) the establishment of prudent investment policies
	relating to the investment objectives of and asset allocation in
	the reserve.
	(d) A member of the committee is not entitled to receive
	compensation for service on the committee or reimbursement for
	expenses incurred in the performance of official duties as a member
	of the committee.
	(e) Members of the committee appointed by the comptroller
	serve at the will of the comptroller.
	(f) Chapter 2110 does not apply to the committee.
	Sec. 403.708. BIENNIAL REPORT. Not later than December 31
	of each even-numbered year, the comptroller shall publish on the
	comptroller's Internet website and submit to the legislature a
	report that includes:
	(1) the amount of bitcoin and other cryptocurrency
	held in the reserve on the last day of the preceding state fiscal
	biennium;
	(2) an estimate of the monetary value of the bitcoin
	and other cryptocurrency held in the reserve on the last day of the
	preceding state fiscal biennium;
	(3) the changes, if any, in the amount and estimated
	monetary value of bitcoin and other cryptocurrency in the reserve
	during the period the cryptocurrency has been held in the reserve,
	disaggregated by cryptocurrency type; and
	(4) a description of the actions taken by the
	comptroller to administer and manage the reserve during the
	preceding state fiscal biennium.
	Sec. 403.709. RULES. The comptroller may adopt rules as
	necessary to administer this subchapter.
	SECTION 3. Section 2256.004(a), Government Code, is amended
	to read as follows:
	(a) This subchapter does not apply to:
	(1) a public retirement system as defined by Section
	802.001;
	(2) state funds invested by the comptroller [as
	~~authorized by Section 404.024~~];
	(3) an institution of higher education having total
	endowments of at least $150 million in book value on September 1,
	2017;
	(4) funds invested by the Veterans' Land Board as
	authorized by Chapter 161, 162, or 164, Natural Resources Code;
	(5) registry funds deposited with the county or
	district clerk under Chapter 117, Local Government Code; or
	(6) a deferred compensation plan that qualifies under
	either Section 401(k) or 457 of the Internal Revenue Code of 1986
	(26 U.S.C. Section 1 et seq.), as amended.
	SECTION 4. As soon as possible after the effective date of
	this Act, the comptroller of public accounts shall:
	(1) adopt rules as necessary to implement this Act;
	and
	(2) appoint members to the Texas Strategic Bitcoin
	Reserve advisory committee as required by Section 403.707,
	Government Code, as added by this Act.
	SECTION 5. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


February 17, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB21 by Schwertner (Relating to the establishment and administration of the Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds.), As Introduced

The fiscal implications of the bill cannot be determined due to the indeterminate amount and value of qualifying cryptocurrency that could be deposited to the Texas Strategic Bitcoin Reserve. It is assumed that any administrative costs incurred by the Comptroller could be absorbed using proceeds from the reserve.

The bill would establish the Texas Strategic Bitcoin Reserve (reserve) as a special fund outside the treasury. The reserve would consist of money transferred or deposited by legislative appropriation, revenue dedicated by general law, bitcoin and other cryptocurrency purchased using money in the reserve, investment earnings and interest or rewards earned on assets in the reserve, and gifts, grants and other donations to the reserve. Any cryptocurrency purchased using money in the reserve would be required to have an average market capitalization of $500.0 billion over the most recent 12-month period.

The bill would authorize the Comptroller to acquire, exchange, sell, supervise, manage, or retain any kind of investment in its administration and management of the reserve. The Comptroller would be authorized to spend, or use proceeds from the sale of, bitcoin and other cryptocurrency in the reserve to pay reasonable administrative costs. The bill would allow money in the reserve to be invested with the state treasury pool and would prohibit the Comptroller, with certain exceptions, from transferring money in the reserve to the state treasury.

The bill would authorize the Comptroller to contract with a third party to administer the reserve, including a qualified custodian who uses secure custodial technologies, and with a certified public accountant to audit the reserve.

The bill would authorize the Comptroller to liquidate the reserve's assets and temporarily transfer money in the reserve to the treasury, as necessary for cash management purposes, and require the return of this money to the reserve, as soon as practicable, along with any interest earned.

The bill would establish a five member Texas Strategic Bitcoin Reserve Advisory Committee to make recommendations for valuing assets in the reserve and to establish prudent investment policies.

The bill would require the Comptroller to publish a biennial report on it's internet website on the financial status of the reserve and submit the report to the Legislature by December 31 of each even numbered year.

The bill would amend Chapter 2256 of the Government Code to clarify that the chapter would not apply to state funds invested by the Comptroller, thus allowing bitcoin investment.

The fiscal impact of the bill cannot be estimated. It is unknown what appropriations would be made for the reserve and the amount and value of qualifying cryptocurrency that would be purchased. This analysis assumes that any administrative costs incurredby the Comptroller could be absorbed using proceeds from the reserve.

Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

Note: The bill would move funds outside the Treasury or otherwise create or establish a fund outside the Treasury. The Texas Constitution authorizes funds outside the Treasury to be expended without legislative appropriation, which may limit the Legislature's ability to make appropriation decisions concerning these funds in the future.

Note: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, CMA, LCO, CSmi

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Frequently Asked Questions

Common questions about SB21

What does Texas SB21 do?

SB21 establishes the Texas Strategic Bitcoin Reserve, creating a rigorous procurement regime for financial institutions and digital asset firms seeking to manage state cryptocurrency assets. While general industry is unaffected, custodians and liquidity providers face immediate, high-barrier eligibility requirements—specifically a five-year operational history and strict "cold storage" protocols—to qualify for state contracts. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Q1 2026 (Estimated).

Who authored SB21?

SB21 was authored by Texas Senator Charles Schwertner during the Regular Session.

When was SB21 signed into law?

SB21 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB21?

SB21 is enforced by Comptroller of Public Accounts.

How urgent is compliance with SB21?

The compliance urgency for SB21 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB21?

The cost impact of SB21 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB21 address?

SB21 addresses topics including financial, financial--general, state finances, state finances--management & control and texas strategic bitcoin reserve and investment act.

Legislative data provided by LegiScanLast updated: November 25, 2025

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