Texas State Senator Charles Schwertner Introduces Bill to Establish a Strategic Bitcoin Reserve

Texas State Senator Charles Schwertner has introduced a bill in the new legislative session to establish a strategic Bitcoin reserve in the Lone Star State.

“It’s time for Texas to lead the way in establishing a Strategic Bitcoin Reserve,” the Republican politician and physician said while announcing the Senate Bill (SB 778) on Monday (Jan. 16).

“If passed and signed into law, [it] would make Texas the first state in the nation to establish a Strategic Bitcoin Reserve,” he said before adding, “This would position our state at the forefront of the digital economy, driving growth and securing economic freedom for our great state.”

The Texas Strategic Bitcoin Reserve Act aims to establish a special fund outside the general revenue fund, allowing the state to own and hold Bitcoin ( BTC ) as a financial asset and to accept Bitcoin donations from the public.

It recognized BTC as a “valuable digital asset with strategic potential for enhancing this state’s financial resilience” while acknowledging its decentralized nature and finite supply, which are “unique qualities that can serve as a hedge against inflation and economic volatility.”

The bill proposes implementing secure storage and management systems while mandating cold storage and regular audits for transparency and security. Legislature can appropriate funds to purchase Bitcoin with funding limited to 1% of general revenue.

SB 778 is not the first legislation proposed to establish a strategic Bitcoin reserve in the Lone Star State. In December, Texas Representative Giovanni Capriglione proposed a draft Texas strategic Bitcoin reserve bill that would allow residents and government entities to donate BTC to the reserve.

This bill (HB 1598), which was submitted through the House rather than the Senate, proposed the comptroller hold Bitcoin as a reserve asset for at least five years.

Cointelegraph reached out to Senator Schwertner for clarification on the differences between the two bills but did not receive an immediate response.

Meanwhile, Texas is not the only state that is angling for a strategic BTC reserve.

On Jan. 15, Representative Cody Maynard proposed HB 1203, the Strategic Bitcoin Reserve Act for the state of Oklahoma, which shares a northern border with Texas.

If passed, the legislation would allow Oklahoma’s pension funds and state savings accounts to allocate a portion of their assets to Bitcoin as a hedge against inflation.

Pennsylvania lawmakers submitted a proposal for a Bitcoin strategic reserve in the state in November, while North Dakota and New Hampshire introduced similar bills earlier this month.