With President Donald Trump’s inauguration just days away, Bitcoin and blockchain supporters are pushing for crypto-friendly policies. Leading the charge is Texas, with Sen. Charles Schwertner announcing a bill to launch his first Bitcoin reserve at the state level.
In a Twitter/X post, Senator Schwertner announced the filing of SB 778, making Texas the first state to create a strategic Bitcoin reserve. According to the Texas lawmaker, creating a strategic Bitcoin reserve will position the state as a blockchain leaderdrive economic growth and ensure economic freedom for all.
Texas wants to lead the Bitcoin revolution
Texas is the 10th largest economy globally and has over $194 billion in general revenue that will fund state 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 crypto mines, including the one in the town of Rockdale, which is recognized as the largest Bitcoin mine in North America.
It’s 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 position our state at… pic.twitter.com/dRdCt86Otr
— Charles Schwertner (@DrSchwertner) 15 January 2025
According to Schwertner, it’s time for Texas to lead the way 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. This committee shall include the Speaker of the House on 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 Texas Crypto Reserve and its primary purpose
While the general purpose of establishing the government’s crypto reserve is to leverage the blockchain and use it as a hedge against inflation, SB 778 also outlines its specific purposes. Under section 403.703, the government aims to hold BTC 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 be held 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 pushing forward. In addition to Texas, Oklahoma has shared its plans to hold the leading digital currency as part of its foreign exchange reserves. Representative Cody Maynard filed HB 1203, the Strategic Reserve Act, which seeks to allocate a portion of state pension funds to purchase these digital assets.
Pennsylvania Lawmakers also filed their plans to invest in Bitcoin. The state’s decision-makers propose that the state’s financial administration allocate up to 10% of the 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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