Texas State Senator Charles Schwertner has proposed a bill during the new legislative session to create a strategic Bitcoin reserve in Texas.
In a recent post on X, the state senator noted that the state should lead the way by establishing a strategic Bitcoin reserve. The senator added that if the bill, SB 778, is passed and signed, it would make Texas the first state in the nation to do so.
Texas Introduces a Strategic Bitcoin Reserve
The Texas Strategic Bitcoin Reserve Act seeks to create a dedicated fund separate from the general revenue fund. This would enable the state to own and store Bitcoin as a financial asset and receive BTC donations from the public. The act also proposes positioning the state at the forefront of the digital economy, promoting growth, and ensuring economic freedom for Texas.
The bill also proposes establishing secure storage and management systems, requiring cold storage and periodic audits to ensure transparency and security. The legislature may allocate funds to buy Bitcoin, with spending capped at 1% of the general revenue.
SB 778 is not the first proposal to create a strategic Bitcoin reserve in Texas. In December, Texas Representative Giovanni Capriglione introduced a draft bill for a Texas Strategic Bitcoin Reserve, permitting residents and government organizations to contribute BTC.
The bill of HB 1598 noted that it would need a two-thirds majority in the Texas Senate and House to pass. The state legislature is set to reconvene for its 89th regular session on January 14.
The HB 1598, proposed in the House rather than the Senate, suggests that the comptroller hold Bitcoin as a reserve asset for at least five years.
A Rise in Creating Bitcoin Reserves
There has been a significant rise in the establishment of a strategic Bitcoin reserve in recent times. On January 9, 2024, Oklahoma State Senator Dusty Deevers introduced the Bitcoin Freedom Act (SB325), a legislative proposal to integrate Bitcoin (BTC) into the state’s financial framework. The bill sought to empower employees to receive salaries in BTC and allow businesses to accept BTC as payment.
Deevers also noted that as Bitcoin’s value continues to climb. The dollar’s worth diminishes due to ongoing printing in Washington, D.C. Oklahoma needs to safeguard its citizens and that the bill guarantees that participation remains completely optional, adhering to “free-market principles” and allowing employees, employers, and businesses to select their preferred payment methods.
If enacted, the legislation would permit Oklahoma’s pension funds and state savings accounts to invest some of their assets in Bitcoin as a hedge against inflation.
In November, Pennsylvania lawmakers proposed a Bitcoin strategic reserve in the state, while similar bills were introduced in North Dakota and New Hampshire earlier this month.
