Days away from President Donald Trump’s inauguration, bitcoin and blockchain proponents are gearing up for crypto-friendly policies. Leading Texas, Senator Charles Schwertner has announced a bill to make its debut. State level bitcoin reserves.
In a Twitter/X post, Senator Schwartner announced the filing of SB 778, making Texas the first state to create a strategic bitcoin reserve. According to a Texan legislator, creating a strategic bitcoin reserve would give the state a Blockchain leaderDrive economic growth, and protect economic freedom for everyone.
Texas wants to lead the Bitcoin revolution
Texas has the 10th largest economy globally and has more than $194 billion in general revenue that will fund the state’s operations from 2026 to 2027. In addition to its large budget, the state has a growing bitcoin and blockchain economy. It is also home to several crypto mines, including one in the city of Rockdale, known as the largest Bitcoin mining operation in North America.
It’s time for Texas to take the lead 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. It will put our state in this place… pic.twitter.com/dRdCt86Otr
— Charles Schwertner (@DrSchwertner) January 15, 2025
According to Schwertner, this is when Texas took the lead in approving and launching a crypto reserve. In addition to the proposal to start a reserve fund, SB 778 also outlines a recommendation to establish the Texas Strategic Bitcoin Reserve Advisory Committee. The committee will include the chairs of the House for Appropriations and Finance, a Comptroller, a member of the Senate and the House, among others.
BTCUSD trading at $99,388 on the daily chart: TradingView.com
The crypto reserve of Texas and its main purpose
While the general purpose of establishing a state crypto reserve is to leverage blockchain and use it as a hedge against inflation, SB 778 also outlines its specific objectives. Pursuant to Section 403.703, the State’s goal is to hold BTC as a financial asset. The document also specifies that individuals, including in Texas, can donate bitcoins to promote a sense of shared ownership and community.
The document also highlights specific transactions that will not be permitted. For example, Section 403.705 specifies that the Comptroller cannot approve transactions to purchase BTC that take place in other countries.
Other US states are actively pursuing individual reserves
Although some questions and risks are associated with creating a reserve, many states are moving forward. In addition to Texas, oklahoma has shared its plans to have the premier digital currency as part of its currency portfolio. Representative Cody Maynard filed HB 1203, the Strategic Reserve Act, which aims to earmark a portion of state pension funds to purchase these digital assets.
Pennsylvania The MPs also presented their plans to invest in Bitcoin. State policymakers suggest that the state treasury allocate up to 10% of funds to buy crypto. Representative Mike Cabell says the state could follow the lead of private financial firms like Fidelity and BlackRock.
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