Texas state Senator Charles Schwertner has introduced Senate Bill (SB 778), a proposal to establish a Strategic Bitcoin Reserve for the Lone Star State. If passed, Texas would become the first state in the US to officially hold Bitcoin as part of its financial strategy.
A First for Bitcoin in State Governance
Announcing the bill on January 16 via X (formerly Twitter), Senator Schwertner emphasized the importance of this move, stating, “It’s time for Texas to lead the way in establishing a Strategic Bitcoin Reserve.” He added that the legislation would position Texas as a leader in the digital economy, driving economic growth and protecting financial freedom for its residents.
The Texas Strategic Bitcoin Reserve Act seeks to create a special fund outside the state’s general revenue, allowing Texas to own Bitcoin as a financial asset. The bill also permits the state to accept Bitcoin donations from the public, recognizing Bitcoin’s decentralized nature and its potential as a hedge against inflation and economic volatility.
Key Features of the Bill
- Bitcoin as a Reserve Asset: The bill highlights Bitcoin’s unique characteristics, including its limited supply and decentralized nature, as valuable tools for financial resilience.
- Secure Management: The legislation mandates secure storage, including the use of cold wallets, and regular audits to ensure transparency.
- Funding Limits: The state’s Bitcoin purchases would be capped at 1% of Texas’ general revenue, ensuring prudent financial management.
- Public Contributions: Texas residents and entities can donate Bitcoin to support the reserve fund.
Competing Legislation in Texas
SB 778 is not the first proposal of its kind in Texas. In December 2024, Representative Giovanni Capriglione introduced House Bill (HB 1598), which also aimed to establish a Bitcoin reserve. HB 1598 proposed that the Texas comptroller hold Bitcoin as a reserve asset for at least five years and accept donations in Bitcoin from residents and government entities.
While the bills share similar goals, details such as management structures and reserve duration may differ. Senator Schwertner has yet to clarify how SB 778 varies from HB 1598.
Growing Momentum for State Bitcoin Reserves
Texas isn’t alone in pursuing a strategic Bitcoin reserve. On January 15, Oklahoma Representative Cody Maynard introduced HB 1203, which proposes allowing the state’s pension funds and savings accounts to allocate a portion of their assets to Bitcoin as a hedge against inflation.
Other states are also exploring similar initiatives. Pennsylvania lawmakers submitted a Bitcoin reserve proposal in November, while North Dakota and New Hampshire presented related bills earlier this month. These developments signal a growing interest among US states in adopting Bitcoin as a strategic financial asset.
