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

Texas is poised to become a trailblazer in the digital economy as Senator Charles Schwertner files Senate Bill 778 (SB 778) to create a Strategic Bitcoin Reserve. If enacted, Texas would be the first state in the U.S. to adopt Bitcoin as a financial asset, marking a significant step toward integrating cryptocurrency into public finance.

Strategic Move Toward Economic Growth

In his announcement on X, Schwertner emphasized that the bill positions Texas “at the forefront of the digital economy.” The proposed legislation cites Bitcoin’s decentralized nature and finite supply as key factors in providing a hedge against inflation and economic instability.

“The Texas Strategic Bitcoin Reserve is a special fund outside the general revenue fund in the state treasury,” the bill reads. The reserve aims to enhance the state’s financial resilience and foster innovation in digital assets while providing additional financial security for its residents.

Building the Reserve

The reserve would consist of Bitcoin acquired through taxes, fees, and donations. This aligns with a similar effort introduced in December 2024 by Texas Representative Giovanni Capriglione, who advocated for building a state-level Bitcoin reserve.

Other States Join the Bitcoin Push

Texas isn’t alone in exploring Bitcoin reserves. Several other states are introducing legislation to integrate cryptocurrency into their economies:

• Oklahoma: Senator Dusty Deevers proposed the Bitcoin Freedom Act to incorporate Bitcoin into the state’s financial system.
• Ohio: House Republican leader Derek Merrin introduced a bill to add Bitcoin to the state’s treasury reserves.
• Pennsylvania: Representative Mike Cabell proposed allocating up to 10% of the state treasury’s balance sheet in Bitcoin, citing its potential to hedge against economic uncertainty.

Federal Perspective on Bitcoin

Despite state-level efforts, experts like Alex Thorn, head of Galaxy Digital, suggest that the federal government is unlikely to purchase Bitcoin in 2025. Instead, it is expected to focus on managing its existing Bitcoin stockpile.

A Step Toward Financial Freedom

The establishment of a Bitcoin reserve underscores Texas’ commitment to innovation and its recognition of cryptocurrency’s potential to bolster economic growth and resilience. If SB 778 becomes law, it could serve as a model for other states looking to embrace the digital economy.