KEY FACTS: Texas State Senator Charles Schwertner has introduced Senate Bill 778, proposing the creation of a Texas Strategic Bitcoin Reserve, which would make Texas the first U.S. state to hold Bitcoin as a financial asset. The bill outlines secure storage methods, caps Bitcoin purchases at 1% of the state’s general revenue, and allows for public contributions. This initiative follows similar efforts in Texas and other states like Oklahoma, Pennsylvania, and North Dakota, pointing to the growing interest in Bitcoin as a hedge against inflation and economic volatility. Senator Schwertner emphasized the potential of this move to position Texas at the forefront of the digital economy.
Source: Dr Schwertner/X
Texas State Senator Proposes Bill to Establish Strategic Bitcoin Reserve
Texas State Senator Charles Schwertner has introduced Senate Bill 778 (SB 778) during the state's 89th legislative session, aimed at establishing a strategic Bitcoin reserve for Texas. This bill if passed positions Texas to become the first U.S. state to hold Bitcoin (BTC) as a financial asset. Senator Charles Schwertner communicated the development through a post on X platform on January 16, 2025.
It's time for Texas to lead the way in establishing a Strategic Bitcoin Reserve. That’s why I filed SB 778, which, if passed and signed into law, would make Texas the first state in the nation to establish a Strategic Bitcoin Reserve. This would position our state at the forefront of the digital economy, driving growth and securing economic freedom for our great state! #txlege
Source
Senator Schwertner emphasized the significance of this proposal, stating that it would position the Texas State at the forefront of the digital economy, and will drive growth as well as secure economic freedom for the great Texas state.
The proposed Texas Strategic Bitcoin Reserve Act seeks to create a special fund, separate from the general revenue fund, enabling the state to own and manage Bitcoin. The bill recognizes BTC as a “valuable digital asset with strategic potential for enhancing this state’s financial resilience”. It highlights Bitcoin's decentralized nature and finite supply, suggesting these attributes can serve as a hedge against inflation and economic volatility.
Key provisions of SB 778 include:
1. Secure Storage and Management: This involves the implementation of robust storage solutions, mandating cold storage methods, and conducting regular audits to ensure transparency and security.
2. Funding Limitations: The legislative appropriations for Bitcoin purchases are capped at 1% of the state's general revenue.
3. Public Contributions: The state can accept Bitcoin donations from individuals and entities to foster community involvement in building the reserve.
This legislative effort follows a similar proposal by Texas Representative Giovanni Capriglione in December 2024. Capriglione's House Bill 1598 (HB 1598) suggested the state comptroller hold Bitcoin as a reserve asset for a minimum of five years and allow residents and government entities to donate BTC to the reserve.
The momentum for state-level Bitcoin reserves is not confined to Texas. Neighboring Oklahoma has seen Representative Cody Maynard propose House Bill 1203 (HB 1203), the Strategic Bitcoin Reserve Act, which would permit state pension funds and savings accounts to allocate a portion of their assets to Bitcoin as a safeguard against inflation.
Other states, including Pennsylvania, North Dakota, and New Hampshire, have introduced similar bills, thereby indicating a growing interest in integrating Bitcoin into state financial strategies.
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