This year, Texas’ legislature enacted a law to create a strategic Bitcoin reserve in the state, paving the way for potential inclusion of other cryptocurrencies. The original bill sponsor indicated that Ether might be the next reserve asset.
In an interview with Cointelegraph on Thursday, Texas state Senator Charles Schwertner discussed the implementation of the Bitcoin (BTC) reserve bill approved by Governor Greg Abbott in June. While the bill permits Texas to maintain a “special fund outside the state treasury” for other cryptocurrencies, Bitcoin was the sole asset meeting the requirements at the time of passage.
“I’m very curious about the speed at which they set up the reserve and its performance in terms of returns,” Schwertner said. “If Ethereum holds its market cap over 24 months, it seems reasonable and prudent to consider adding Ethereum to the cryptocurrency [reserve].”
As per the law establishing a Texas Strategic Bitcoin Reserve, any cryptocurrency must “have an average market capitalization of at least $500 billion over the most recent 24-month period” to qualify as a reserve asset. Bitcoin, boasting a market capitalization exceeding $2 trillion, fulfills this requirement.
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In contrast, Ether (ETH) has surpassed a $500 billion market cap only twice: briefly in 2021 and sporadically from August to October this year. On Friday, ETH’s price and market cap saw a sharp decline, reaching approximately $494 billion at the time of publishing.
What sets Texas’ law apart from those in other states?
While numerous US states have dismissed or failed to advance similar crypto reserve legislation, Arizona and New Hampshire enacted laws in 2025. Arizona’s fund includes cryptocurrencies seized through criminal forfeiture, while New Hampshire enables its treasury to invest in cryptocurrencies with a market cap above $500 billion.
“We’re the only state that has actually allocated sovereign funds, taxpayer money, toward the reserve,” Schwertner remarked, adding: “We accepted the full responsibility of [establishing] a reserve along with the associated financing.”
According to the senator, the state comptroller is exploring how to implement the law, including the selection of custodians for the reserve’s assets. Under the law, any custodian must be a “state or federally chartered financial institution” or another entity regulated within Texas.
Texas’ legislation and other proposals followed the federal government, under President Donald Trump, creating both a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile” in March. The executive order detailed policies for using confiscated cryptocurrencies to fund the reserve, while officials later noted “budget-neutral ways” to acquire BTC.
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