If enacted, Senate Bill 778 (SB 778) would make Texas the first state in the United States to promote economic growth and financial freedom through a Strategic Bitcoin Reserve.
Key Highlights:
- Bill Introduction: Texas Senator Charles Schwertner has introduced SB 778, aiming to create a Strategic Bitcoin Reserve. The legislation, if passed, would position Texas as a leader in the digital economy and establish Bitcoin as a financial asset held by the state.
- Financial Resilience: The bill highlights Bitcoin’s decentralized nature and finite supply as tools to hedge against inflation and economic volatility. The reserve would function as a special fund outside the state’s general revenue fund.
- Commitment to Innovation: Schwertner emphasized the state’s dedication to fostering digital asset innovation and enhancing financial security for its residents.
Background and Broader Adoption:
- In December 2024, Texas House Representative Giovanni Capriglione proposed legislation to begin building a Bitcoin reserve by accepting taxes, fees, and donations in BTC.
- Other states, including Oklahoma, Ohio, and Pennsylvania, are considering similar initiatives:
- Oklahoma’s Bitcoin Freedom Act aims to integrate Bitcoin into the state economy.
- Ohio is exploring adding Bitcoin to its treasury reserves.
- Pennsylvania’s Rep. Mike Cabell proposed allocating up to 10% of the state’s treasury balance to Bitcoin.
National Outlook:
- Despite individual state efforts, Alex Thorn, head of Galaxy Digital, predicts that the U.S. government is unlikely to purchase Bitcoin in 2025. Instead, it may focus on managing its existing Bitcoin stockpile.
The proposed Texas Bitcoin Reserve underscores a growing trend among states to embrace digital assets, potentially reshaping the economic and financial landscape across the country.
