Texas Senator Files Bill to Establish First State-Level Bitcoin Strategic Reserve

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Sujha Sundararajan

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January 16, 2025 03:41 EST

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Texas Senator Charles Schwertner has filed Senate Bill 778 (SB 778), to establish a Strategic Bitcoin Reserve. If passed, the legislation would make the state first in the nation to foster economic growth and financial freedom.

According to the Senator’s post on X, the bill would position Texas “at the forefront of the digital economy.”

Furthermore, he noted that if signed into law, Texas would own and hold Bitcoin as a financial asset.

“Bitcoin is a valuable digital asset with strategic potential for enhancing this state’s financial resilience,” the Texas Senator’s bill read. “The Texas Strategic Bitcoin Reserve is a special fund outside the general revenue fund in the state treasury.”

Sen. Schwertner emphasized that Bitcoin’s decentralized nature and finite supply would serve as a hedge against inflation and economic volatility.

“The establishment of a strategic bitcoin reserve aligns with this state’s commitment to fostering innovation in digital assets and providing enhanced financial security to residents of this state.”

In December 2024, Texas House of Representatives introduced a legislation for the purpose of establishing a proper Bitcoin Reserve. Republican state Rep. Giovanni Capriglione noted at the time that the bill would start building a strategic Bitcoin reserve by accepting taxes, fees and donations in BTC.

Several US States Propose to Establish Strategic Bitcoin Reserves

Besides the Lone Star state, several US states have been in the race to build a strategic BTC reserve. Last week, Oklahoma Senator Dusty Deevers introduced the Bitcoin Freedom Act, to integrate Bitcoin into the state’s economy.

The state of Ohio is also considering adding the largest crypto to its treasury reserves. It launched a new bill by House Republican leader Derek Merrin.

Similarly, Pennsylvania’s Rep. Mike Cabell proposed a bill in November to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin. Cabell cited the asset’s potential to hedge against economic uncertainty.

However, Alex Thorn, head of Galaxy Digital said that the US government is not expected to purchase Bitcoin in 2025. Thorn predicted that the government will focus on managing its existing Bitcoin stockpile rather than acquiring more.