Texas Governor’s New Bill

Texas Governor Greg Abbott has passed House Bill 4488 (HB4488), a measure that protects select state funds, including any Bitcoin reserve created outside the state treasury, from being swept into general revenue.

Governor Abbott has not yet made a decision on Senate Bill 21 (SB21), which would authorize Texas to invest in Bitcoin and other crypto assets with a market capitalization of at least $500 billion. As of now, only Bitcoin meets this threshold.

Besides the Texas Strategic Bitcoin Reserve, the legislation names other protected funds, such as the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account. These funds will be created or re-created as separate entities, depending on their enabling legislation.

The fate of the Texas Strategic Bitcoin Reserve hinges on whether SB21 or similar proposed legislation passes and is signed into law. If established, the fund would be legally protected under the framework set by HB4488.

Governor Abbott has until June 22 to sign or veto SB21, which was sent to him on June 1. Due to its delivery timing, Texas law allows him 20 days after adjournment to take action. If he does not act by the deadline, the bill automatically becomes law.