Emily Walker
With the inauguration of President Donald Trump approaching, advocates for Bitcoin and blockchain are optimistic about potential supportive regulations. Senator Charles Schwertner of Texas is at the forefront, having introduced a bill to establish the state’s inaugural Bitcoin reserve.
In a post on Twitter/X, Senator Schwertner revealed the introduction of SB 778, making Texas the first state to plan a strategic Bitcoin reserve. He believes this initiative will not only enhance Texas’s reputation as a leader in blockchain but also promote economic growth and safeguard economic liberty for its residents.
Texas Aims to Pave the Way in Bitcoin
Ranking as the 10th largest economy in the world, Texas generates over $194 billion in revenue set to fund state operations from 2026 to 2027. Alongside its substantial budget, the state boasts a flourishing Bitcoin and blockchain sector. Texas hosts numerous cryptocurrency mining facilities, including the largest operation in North America located in Rockdale.
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… pic.twitter.com/dRdCt86Otr
— Charles Schwertner (@DrSchwertner) January 15, 2025
Senator Schwertner believes that it is crucial for Texas to spearhead the establishment of a crypto reserve. Besides initiating a reserve fund, SB 778 proposes the creation of the Texas Strategic Bitcoin Reserve Advisory Committee. This committee will consist of key figures including the heads of the House Appropriations and Finance committees, a comptroller, and members from both the Senate and the House.
Primary Goals of Texas’ Crypto Reserve
The main objective of the proposed crypto reserve is to utilize blockchain technology as a safeguard against inflation. Specific goals outlined in SB 778 indicate the state’s intent to hold Bitcoin as a financial asset. The proposal also allows residents to donate Bitcoin to foster a sense of community and shared ownership.
Moreover, certain transactions are prohibited by the proposal. For instance, Section 403.705 clearly states that the comptroller is not permitted to authorize Bitcoin acquisitions for storage in foreign nations.
Other States Exploring Their Own Reserves
Despite potential concerns and challenges regarding the establishment of a reserve, several other states are moving ahead with similar plans. For example, Oklahoma has indicated its intention to incorporate Bitcoin into its reserves. Representative Cody Maynard has introduced HB 1203, aimed at utilizing state pension funds to invest in cryptocurrencies.
Pennsylvania is also examining plans to invest in Bitcoin, suggesting the state treasury allocate 10% of its funds for this purpose, following the examples set by companies like Fidelity and BlackRock.
Image courtesy of Kitco; graph sourced from TradingView.