Texas’ Bitcoin Reserve: A Crypto Revolution or Risky Public Bet?
Texas greenlights a Bitcoin reserve fund, eyeing crypto as a hedge against economic woes. Is this a bold move or a taxpayer gamble?
Texas is poised to make history as the third U.S. state to establish a strategic Bitcoin reserve, following New Hampshire and Arizona. On May 31, 2025, the Texas Senate approved Senate Bill 21 with a 24-7 vote, clearing the final legislative hurdle for the Lone Star Bitcoin Reserve Fund. The bill now awaits Governor Greg Abbott’s signature, who has signaled strong support for crypto-friendly policies. This fund, managed by the state comptroller, aims to invest in Bitcoin and other cryptocurrencies with a market cap exceeding $500 billion, positioning Texas as a crypto hub.
The move is seen as a hedge against inflation and federal spending, with proponents arguing it diversifies state finances. Texas, already a crypto mining powerhouse, could attract more blockchain investment, boosting its economy. However, critics warn that allocating taxpayer money to volatile assets like Bitcoin risks pension funds and public resources. The bill’s strict criteria, excluding lending or staking, aim to mitigate some risks, but price swings remain a concern.
For new investors, this signals growing institutional trust in Bitcoin, potentially driving prices higher—some predict $150,000 by August. Yet, crypto’s volatility demands caution. Diversify investments and stay updated on regulatory shifts to navigate this bold experiment.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
