Acting Texas Comptroller Kelly Hancock announced the appointment of a five-member advisory committee on May 29, 2026, to guide the state’s transition toward a direct-custody Texas Strategic Bitcoin Reserve. This move accelerates the state’s pivot away from its initial $5 million placeholder investment in BlackRock’s iShares Bitcoin Trust (IBIT), which was established in November 2025. By moving toward managing its own digital assets on-chain, Texas aims to secure full operational control over its $10 million Bitcoin allocation rather than relying on third-party exchange-traded products.
The shift is mandated by the Texas Strategic Bitcoin Reserve and Investment Act, known as Senate Bill 21 (SB 21), which Governor Greg Abbott signed into law on June 20, 2025. This legislation allows the state to hold Bitcoin as a long-term hedge against inflation and economic volatility. Unlike traditional financial instruments, the reserve operates independently of the general treasury system, ensuring these digital assets enhance the financial security of Texas residents.
State Sen. Charles Schwertner, the primary sponsor of the bill, has described Bitcoin as “digital gold” and a critical asset for the state’s future. The transition to direct custody represents a commitment to fiscal sovereignty. By holding the underlying asset directly, the state avoids the constraints of ETF structures, a move that comes at a time of broader institutional interest, such as Morgan Stanley expanding Bitcoin access for its wealth management clients.
Members of the Texas Strategic Bitcoin Reserve Advisory Committee
The newly formed committee is tasked with advising the Comptroller on recommendations related to the valuation, custody, and risk management of the state’s Bitcoin holdings. Acting Texas Comptroller Kelly Hancock will serve as a member of the group he announced, bringing together experts from the private sector, academia, and state governance to oversee the fund’s administration.
Joining Hancock on the committee is Laurie Dotter, who chairs the Investment Advisory Board for the Employees Retirement System of Texas. Her 35 years of investment and governance experience will be paired with the technical background of other members, including Jamie McAvity, the founder and CEO of Cormint Data Systems. McAvity operates a 130-megawatt Bitcoin mining facility in Fort Stockton, Texas.
The committee also includes Carla Reyes, a professor at Southern Methodist University and a legal scholar specializing in digital assets. Reyes also serves on the federal Commodity Futures Trading Commission’s Innovation Advisory Committee. This level of legal oversight is vital as federal authorities clarify their roles, with some officials like Michael Gillick stating the CFTC is ready to oversee crypto markets. The final member is Gary A. Vecchiarelli, CPA, the President and CFO of CleanSpark.
Designing an on-chain state custody system
Texas is not simply buying digital currency; it is building a custom infrastructure to manage it. The Comptroller’s office issued a Request for Proposal (RFP) on May 7, 2026, to recruit an institutional custodian and liquidity provider. The state requires the selected vendor to manage private keys and provide real-time reporting via a public-facing website, allowing taxpayers to verify the reserve’s value and holdings.
This transparency is a primary requirement of the original legislation. Vendors have until June 15, 2026, to submit their proposals. Once a contract is executed, the selected firm will have a 60-day window to support the transition from ETF exposure to directly custodied Bitcoin held in the name of the State of Texas. This transition is expected to kick off around August 2026.
Holding Bitcoin directly allows the state to manage the asset’s unique properties. This includes the ability to benefit from network forks or airdrops, which are identified as potential funding sources for the reserve. Such direct control is increasingly sought after, particularly as precious metals rally and investors look for secure, long-term alternatives to traditional cash positions.
Operational requirements and financial protections
The selected liquidity provider will handle more than just storage. They must provide liquidity services for purchases and sales without causing significant market disruption. The state has specified that all assets must be stored using secure custody and operational controls. The legislation also dictates that the reserve is strictly an investment vehicle, meaning Texas cannot use it for general expenses or to accept Bitcoin tax payments.
State Rep. Giovanni Capriglione, a bill sponsor, called the initiative a pivotal moment for Texas leadership. He noted that the asset strengthens fiscal sovereignty and positions the state for the evolution of global finance. The Comptroller is required to publish a biennial report detailing administrative actions and the total market value of the assets held in the reserve.
As the June 15 deadline for vendor proposals approaches, the industry is watching how Texas implements its model. The committee’s mandate is to ensure the reserve is managed responsibly and in the best interest of taxpayers. Hancock emphasized that the process must be handled with “transparency, security and strong financial controls” as the state transitions into its role as a direct participant in the Bitcoin network.