Texas Eyes Ether as Next Asset in State’s Strategic Crypto Reserve

TLDR

• Texas has passed a law to establish a state-run Bitcoin reserve using taxpayer funds.
• The crypto reserve bill requires any digital asset to maintain an average market cap of $500 billion over 24 months to qualify.
• Bitcoin currently qualifies under the law with a market cap exceeding $2 trillion.
• Senator Charles Schwertner stated that Ethereum could be considered if it sustains the required market cap.
• The Texas comptroller is assessing regulated institutions to act as custodians for the reserve assets.

Texas passed a groundbreaking law this year to create a state-run Bitcoin reserve using taxpayer money. The law, signed by Governor Greg Abbott in June, aims to secure digital assets for long-term value. Senator Charles Schwertner, who sponsored the crypto reserve bill, confirmed that Ether could become the next asset added.

Bitcoin Qualifies as First Strategic Reserve Asset

Texas became the first U.S. state to allocate public funds to a crypto reserve bill. The law mandates any eligible cryptocurrency must maintain a $500 billion average market cap for 24 months. Currently, Bitcoin alone satisfies this criterion, with a market cap exceeding $2 trillion.

Senator Schwertner said, “We took the full punch [establishing] a reserve as well as the money behind it.” The law requires assets to be held in a special fund outside the state treasury. The state comptroller is currently reviewing qualified custodians and operational frameworks for the reserve.

The crypto reserve bill also specifies that custodians must be regulated entities within Texas or federal financial institutions. This approach ensures compliance and institutional oversight of taxpayer-backed reserves. The reserve is designed to provide long-term value and potential returns to the state.

Texas Considers Adding Ethereum to Crypto Reserve

Although Ethereum briefly reached the $500 billion cap in 2021, it fell below again recently, in late 2025. As of Friday, Ether’s market cap stood at $494 billion, just under the required threshold. The crypto reserve bill demands a sustained valuation, not short-term price spikes.

Senator Schwertner expressed interest in Ethereum’s inclusion, contingent on consistent market performance. “If Ethereum maintains its market cap over 24 months, I think it’s reasonable,” he said. He believes such a move could be prudent for the fund’s diversification.

Texas’ crypto reserve bill sets a strict bar for qualification, but the door remains open for other cryptocurrencies. The law offers flexibility by allowing other assets once they meet the set requirements. Ethereum’s market activity over the coming months will be closely monitored for this reason.

Other States Explore Digital Reserve Funds

Unlike Texas, other states have adopted more lenient versions of cryptocurrency legislation. Arizona passed a law in 2025 that utilizes seized digital assets for its cryptocurrency reserve bill. New Hampshire also authorized crypto investments through its treasury for assets meeting the market cap rule.

However, neither state used taxpayer funds directly, unlike Texas. Senator Schwertner emphasized Texas’ full commitment to building a robust digital reserve. He noted, “We’re the only state that actually put sovereign money, taxpayer money, toward the reserve.”

Federal efforts also support this trend, with President Trump’s executive order creating a national digital asset reserve in March. It included both a Strategic Bitcoin Reserve and a Digital Asset Stockpile. Officials said the program could be funded using confiscated assets or through budget-neutral methods.

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