In the 2025 legislative session, Texas state senator Charles Schwertner has submitted a historic bill to create a “Strategic Bitcoin Reserve” within the state.
Senate Bill 778, if passed, would make Texas the first state in the United States to officially recognize Bitcoin as a strategic reserve asset, marking a bold step towards positioning the state at the forefront of the digital economy.
A Strategic Move for Economic Resilience
Schwertner voiced his intentions on social media platform X (Twitter), emphasizing the importance of Bitcoin in securing economic freedom and driving growth. “It’s time for Texas to lead the way in establishing a Strategic Bitcoin Reserve,” Schwertner said.
“This bill would make Texas the first state in the nation to establish a Strategic Bitcoin Reserve, positioning our state at the forefront of the digital economy.”
The Texas Strategic Bitcoin Reserve Act would create a dedicated fund outside the state’s general revenue to allow the Texas government to own and hold Bitcoin as a financial asset.
It also proposes that the state accept Bitcoin donations from the public, further integrating the digital asset into the state’s financial infrastructure.
Why is the Bill Important?
The bill outlines the potential for Bitcoin to act as a hedge against inflation and economic volatility, citing the cryptocurrency’s decentralized nature and its finite supply as key attributes that could enhance Texas’ financial resilience.
Also Read: Japan’s Govt Cautious on Bitcoin Reserves Amid Uncertainty, Prioritizes Safety and Liquidity
The bill envisions that secure storage and management systems would be implemented, ensuring that Bitcoin is stored safely. Furthermore, it mandates cold storage for the asset, along with regular audits to ensure transparency and security.
The state legislature would be authorized to appropriate funds to purchase Bitcoin, but the purchase would be limited to no more than 1% of the general revenue, ensuring fiscal responsibility.
Growing Interest in Bitcoin Reserves
While Texas is taking the lead in the United States, it is not the only state exploring the potential of Bitcoin as a reserve asset. Oklahoma Representative Cody Maynard has introduced House Bill 1203, known as the Strategic Bitcoin Reserve Act, which seeks to allocate a portion of the state’s pension funds and savings accounts into Bitcoin.
Like Texas, Oklahoma is also eyeing Bitcoin as a potential hedge against inflation, recognizing the asset’s growing role in global financial markets.
The move by Texas comes as global interest in Bitcoin reserves continues to grow. Countries such as Japan, Switzerland, and Russia have already begun exploring strategies to incorporate Bitcoin into their financial systems.
Additionally, Vancouver has made significant strides, becoming one of the first municipalities to approve Bitcoin as part of its reserves.
The Broader Implications
If successful, Texas could set a powerful precedent, encouraging other states to follow suit in adopting Bitcoin as a strategic reserve asset.
In the broader context, this development signals the growing acceptance of cryptocurrencies within government financial systems, not just as speculative investments but as legitimate financial instruments with long-term strategic potential.
As Texas takes steps to integrate Bitcoin into its financial framework, the world will be watching to see if other states and even countries begin to embrace the cryptocurrency in the same way.
Also Read: 13 US States Draft Bitcoin Reserve Laws, Satoshi Fund CEO Reveals