Texas has presented a revolutionary measure that might make it the first state in the country to create a strategic Bitcoin reserve. Senator Charles Schwertner introduced Senate Bill 778 (SB 778) on January 16, 2025, at the start of the state’s 89th legislative session, emphasizing Bitcoin’s potential to boost the state’s financial future.
Schwertner, a Republican from Texas, believes that by establishing a strategic Bitcoin reserve, the state can increase economic freedom and set the standard in the digital economy. The proposed bill would create a special fund, independent from Texas’ regular revenue pool, to buy and hold Bitcoin as an asset. Furthermore, the measure would authorize the state to accept Bitcoin donations from the public, establishing Bitcoin as a strategic financial resource for the state.
The legislation recognizes Bitcoin’s distinguishing characteristics—its decentralized structure and finite supply—as valuable assets that can help Texas weather inflation and economic turbulence. The bill calls for secure management, cold storage, and frequent audits to maintain transparency and protect assets. Furthermore, it limits the state’s Bitcoin purchases to 1% of total revenue, assuring prudent investing.
Representative Giovanni Capriglione made a similar proposal in December 2024, which SB 778 follows up on. While both proposals seek to establish Bitcoin as a state reserve, Schwertner’s bill is the most recent effort to position Texas at the forefront of financial innovation.
Texas is not alone in its quest for a Bitcoin reserve. Other states, such as Oklahoma, Pennsylvania, North Dakota, and New Hampshire, have submitted similar legislation, indicating a rising interest in using Bitcoin as a hedge against economic volatility. If passed, SB 778 might help Texas secure its position as a digital economy leader.
