Texas Lawmaker Hints Ether Could Join State Reserve

As Texas rolls out its recently passed law to establish a state-level crypto reserve, the original sponsor is already hinting at the possibility of adding Ethereum (ETH) to the fund down the line.

Overview

On Thursday, Texas State Senator Charles Schwertner spoke about the rollout of the Bitcoin (BTC) reserve bill that Governor Greg Abbott approved in June. While the bill permits the state to store other digital assets in a

“special fund outside the state treasury,”

BTC was the sole crypto that satisfied the eligibility criteria when the bill was enacted. If Ether maintains a sufficiently high market capitalisation over time, it could qualify for inclusion.

From Bitcoin to Broader Crypto Ambitions

In June 2025, Texas Governor Greg Abbott signed into law a bill creating a Texas Strategic BTC Reserve, authorising the state to hold digital assets in a

“special fund outside the state treasury.”

  Although the law allows for holding other cryptocurrencies under certain conditions, only BTC qualified at the time of enactment.

Senator Schwertner expressed interest in seeing how the reserve performs before expanding the asset list.

“If Ethereum maintains its market cap over 24 months, I think it’s reasonable and prudent to give direction that Ethereum could be added to the cryptocurrency [reserve],”

he said.

The Hurdle: Market Cap Thresholds

A key constraint in the law is that any crypto asset added to the fund must satisfy a minimum market capitalisation requirement — specifically, an average market cap of at least US$500 billion over the most recent 24 months. 

Bitcoin, whose market capitalisation has long exceeded that threshold, was the only major crypto meeting the requirement at passage. By comparison, Ether has only surpassed the $500 billion mark sporadically — notably during parts of 2021 and intermittently in 2022 — and has fallen below it again recently, with its market cap dipping to about $494 billion at the time of reporting. 

Implementation, Risks, and Political Implications

Although the law is in place, many details remain to be answered, especially how Texas will operationalise the reserve. The state comptroller’s office is reportedly exploring custody arrangements; under the bill, custodians must be either state- or federally chartered institutions or regulated entities within Texas. 

Critics have cautioned that placing taxpayer funds in volatile crypto assets could expose the state to substantial financial risk. Some commentators argue the move could be seen as benefiting crypto industry insiders or as an experiment with uncertain outcomes. 

Supporters counter that the measure puts Texas on the vanguard of financial innovation, diversifying state assets in the digital age and potentially setting a model for other jurisdictions. Should Ethereum sustain the required market strength, Schwertner’s advocacy suggests the state may move to broaden the reserve’s scope beyond Bitcoin.