As President Donald Trump’s inauguration approaches in just a few days, supporters of Bitcoin and blockchain are preparing for crypto-friendly initiatives. Taking the lead is Texas, with Senator Charles Schwertner revealing a proposal to establish its first state-level Bitcoin reserve.
In a post on Twitter/X, Senator Schwertner disclosed the introduction of SB 778, making Texas the pioneering state to establish a strategic Bitcoin reserve. The Texan lawmaker stated that forming a strategic Bitcoin reserve would position the state as a blockchain frontrunner, stimulate economic advancement, and safeguard everyone’s financial freedom.
Texas Aims to Head the Bitcoin Movement
Texas ranks as the 10th largest economy worldwide and boasts over $194 billion in general revenue designated to support the state’s operations from 2026 to 2027. Beyond its substantial budget, the state is fostering a burgeoning Bitcoin and blockchain sector. Furthermore, it is home to numerous crypto mining facilities, including one in Rockdale, recognized as the largest Bitcoin mining site in North America.
It’s essential for Texas to take the initiative in creating a Strategic Bitcoin Reserve. That’s the reason I filed SB 778, which, if approved and enacted into law, would position Texas as the first state in the nation to establish a Strategic Bitcoin Reserve. This would place our state at the… pic.twitter.com/dRdCt86Otr
— Charles Schwertner (@DrSchwertner) January 15, 2025
As per Schwertner, it is high time Texas took the lead in endorsing and initiating a crypto reserve. In addition to the proposal for establishing a reserve fund, SB 778 also includes a recommendation to form the Texas Strategic Bitcoin Reserve Advisory Committee. This committee shall consist of the House chairs for Appropriations and Finance, a comptroller, a member from both the Senate and the House, among others.
BTCUSD trading at $99,388 on the daily chart: TradingView.com
Texas’ Crypto Reserve and Its Main Objective
While the overarching goal of establishing the state’s crypto reserve is to utilize blockchain as a means of hedging against inflation, SB 778 also specifies its particular objectives. According to Section 403.703, the state intends to hold BTC as a financial asset. The document also states that individuals, including Texans, may contribute Bitcoin to foster shared ownership and a sense of community.
The document further emphasizes particular transactions that are prohibited. For instance, Section 403.705 specifies that the comptroller is not permitted to approve transactions for purchasing BTC intended to be held in foreign countries.
Other U.S. States Are Actively Seeking Individual Reserves
Despite some uncertainties and risks linked to establishing a reserve, numerous states are advancing their efforts. Besides Texas, Oklahoma has revealed its intentions to incorporate the leading digital currency as part of its currency reserves. Representative Cody Maynard introduced HB 1203, the Strategic Reserve Act, which aims to allocate a segment of the state’s pension funds to purchase these digital assets.
Pennsylvania legislators have also proposed initiatives to invest in Bitcoin. The state’s decision-makers recommend that the Treasury allocate up to 10% of its funds to acquire cryptocurrency. Representative Mike Cabell suggests that the state can emulate the example set by private financial institutions such as Fidelity and BlackRock.
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