USA – TEXAS Trends and Developments Contributed by: Chris Davis, Joshua Smeltzer and Suhani Patel, Gray Reed
Bitcoin futures, but that materially differs from states directly acquiring and holding Bitcoin in designated reserves as an asset of the state itself. The Texas Bankers Association notes that a Strate- gic Bitcoin Reserve functions as “a government-held stockpile of digital assets – mostly Bitcoin – set aside for strategic purposes”, drawing comparisons to the way nations hold gold or foreign currencies. In the same vein, proponents believe Bitcoin’s mathemati- cally limited supply of 21 million coins makes it a pow- erful hedge against inflation, that it diversifies state holdings beyond traditional assets, and that state- level embracing of digital assets can attract fintech investment, blockchain talent and innovation ecosys- tems. Investment in digital assets – Bitcoin or other- wise – is not without risks. However, policy makers are factoring in concerns such as Bitcoin’s price volatility, the cybersecurity risks in storing digital assets, and the opportunity cost of diverting public funds from more potentially predictable uses. The legislation empowers Texas to manage and self- custody Bitcoin as a strategic reserve asset. However, at the time of the initial purchase, Texas did not have the infrastructure for direct self-custody. Therefore, the investment was made through BlackRock’s spot Bitcoin ETF (IBIT) (perhaps inadvertently appeasing both critics and proponents). On 7 May 2026, the Tex- as Comptroller of Public Accounts, on behalf of the Texas Treasury Safekeeping Trust Company, issued a Request for Proposal (RFP) No 908-26-1778WS, formally seeking qualified custodians and liquidity providers to establish and manage the Texas Stra- tegic Bitcoin Reserve. No separate appropriations were included to cover the cost of establishing and maintaining the Reserve; instead, the Act authorises the Trust Company to sell Bitcoin or other cryptocur- rencies in the Reserve to cover reasonable administra- tive costs. The issuance of this RFP marks a pivotal transition for the Texas Bitcoin Reserve – from a con- cept validated by a conservative ETF purchase to the imminent reality of state-level direct Bitcoin custody. Texas Financial Institutions: Banks and Credit Unions Texas occupies a unique position with respect to financial institutions and digital assets. The state has
one of the most state-chartered banks and credit unions of any state in the nation, and Texas banking regulators were early movers in providing guidance on cryptocurrency transactions. Banking In 2014, the Texas Department of Banking (TDB) became the first state bank regulator in the country to provide guidance on when a cryptocurrency transac- tion falls within the state’s money transmission statute. Through Supervisory Memorandum 1037, the TDB interpreted the state’s money transmission statute to generally require licensure of third-party exchangers – including automated teller machines – that exchange cryptocurrency for government-issued currency. In 2019, the TDB amended Supervisory Memorandum 1037 to provide that stablecoin transactions also qual- ify as money transmission – making Texas the first state to specifically include stablecoins within its defi- nition of “money or monetary value” under its money transmission statute. On 10 June 2021, the TBD published Industry Notice 2021-03, which expressly authorised Texas state- chartered banks to provide cryptocurrency custody services to the public. This includes creating crypto- currency private keys and possessing them on behalf of clients. Further, banks have discretion to select storage options – custodial in a fiduciary or non-fiduci- ary capacity. Banks are required to conduct thorough due diligence through a methodical risk assessment process, as they cannot escape liability by outsourc- ing duties to third-party service providers. Even when engaging outside expertise, banks must implement a robust service provider oversight programme to ensure continued compliance and accountability. Although Texas banks must be cautious, with proper policies and oversight the regulatory framework in Texas has been significantly more digital asset-friend- ly and earlier than most other states. Credit unions In Texas, credit unions are primarily governed by the Texas Finance Code and the rules adopted by the Texas Credit Union Commission (the “Commission Rules”). These statutes and rules establish the frame- work for permissible investments for Texas credit unions and serve as the foundation for any discussion
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