S.B. No. 21 establishes the Texas Strategic Bitcoin Reserve, a special fund aimed at investing in cryptocurrency, specifically bitcoin and other digital assets. The bill amends Chapter 403 of the Government Code by adding Subchapter V, which outlines the definitions, purposes, and administration of the reserve. The comptroller of public accounts is given the authority to manage the reserve, which will consist of funds appropriated by the legislature, revenue dedicated to the reserve, and any cryptocurrency acquired through purchases, forks, or airdrops. The bill also sets a market capitalization requirement for the cryptocurrencies purchased, mandating that they must have an average market capitalization of at least $500 billion over the previous 24 months.

Additionally, the bill allows the comptroller to contract with third-party entities for the management of the reserve and establishes an advisory committee to provide guidance on investment strategies. The comptroller is required to publish a biennial report detailing the reserve's holdings and management actions. The bill also includes provisions for the temporary transfer of funds to the state treasury for cash management purposes, with a requirement to return the funds along with any earned interest. The comptroller is tasked with adopting necessary rules to implement the act, which will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Government Code 2256.004 (Government Code 2256)
Senate Committee Report: Government Code 2256.004 (Government Code 2256)
Engrossed: Government Code 2256.004 (Government Code 2256)
House Committee Report: Government Code 2256.004 (Government Code 2256)
Enrolled: Government Code 2256.004 (Government Code 2256)