With the inauguration of President Donald Trump just days away, Bitcoin and blockchain supporters are gearing up for cryptocurrency-friendly policies. The state of Texas is at the forefront of this mission, as Senator Charles Schwertner announced a draft law to launch his first project Bitcoin reserves nationwide.
In a post on Twitter/X, Senator Schwertner announced the introduction of SB 778, making Texas the first state to establish a strategic bitcoin reserve. According to the Texas lawmaker, creating a strategic bitcoin reserve would put the state in a prominent position Blockchain leaderPromoting economic growth and ensuring economic freedom for all.
Texas wants to lead the Bitcoin revolution
Texas is the world’s 10th largest economy and has more than $194 billion in general revenues that will fund the state’s operations from 2026 to 2027. In addition to its massive budget, the state has a growing Bitcoin and blockchain economy. It is also home to several cryptocurrency mines, including the one in Rockdale, which is known as the largest Bitcoin mining operation in North America.
It is 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 country to establish a strategic bitcoin reserve. This would put our country in… pic.twitter.com/dRdCt86Otr
– Charles Schwertner (@DrSchwertner) January 15, 2025
According to Schwertner, it is time for Texas to lead the way in approving and launching a cryptocurrency reserve. In addition to proposing to start a reserve fund, SB 778 also outlines a recommendation to establish the Texas Strategic Bitcoin Reserve Advisory Committee. This committee includes the House Chairs of Appropriations and Finance, the Comptroller, and a member of the House and Senate, among others.
BTCUSD trading at $99,388 on the daily chart: TradingView.com
Cryptocurrency reserve in Texas and its primary purpose
Although the overall goal of creating a state cryptocurrency reserve is to leverage blockchain and use it as a hedge against inflation, SB 778 also outlines its specific purposes. Pursuant to Section 403.703, the state intends to hold Bitcoin as a financial asset. The document also specifies that people, including Texans, can donate Bitcoin to promote shared ownership and a sense of community.
The document also highlights specific transactions that will not be allowed. For example, Section 403.705 states that the Comptroller cannot approve transactions to purchase BTC to hold in other countries.
Other US states are actively pursuing individual reserves
Although some questions and risks are associated with establishing a reserve, many countries are moving forward. Aside from Texas, Oklahoma It shared its plans to hold the first digital currency as part of its currency reserves. Representative Cody Maynard introduced the Strategic Reserve Act, HB 1203, which aims to set aside a portion of the state’s retirement funds to purchase these digital assets.
Pennsylvania Lawmakers also presented their plans to invest in Bitcoin. State policymakers are proposing that the state Treasury allocate up to 10% of funds to purchase cryptocurrencies. Rep. Mike Cabell says the state could follow the example of private financial companies like Fidelity and BlackRock.
Featured image from Kitco, chart from TradingView
