- Texas is advancing a bill to establish a state-controlled Bitcoin reserve, aiming to enhance financial security, encourage community investment, and reinforce its role in digital asset innovation.
- The bill includes strict security measures, oversight by the Texas Comptroller’s Office, and emergency provisions, with potential enactment as early as September 1, 2025.
Texas is making waves in the cryptocurrency world with its latest legislative move—advancing a bill to establish a state-controlled Bitcoin reserve. The Texas Strategic Bitcoin Reserve Act, also known as Senate Bill 778, is designed to enhance financial security, promote community investment, and solidify Texas’ leadership in digital asset innovation.
Bitcoin Reserve Bill Progresses in the Senate
On February 7, the bill was read and referred to the Senate Finance Committee for review. Introduced by Senator Charles Schwertner, the proposed legislation seeks to create a state-managed Bitcoin reserve that would serve as a financial safeguard while encouraging public participation in Texas’ economic future.
According to the bill, the reserve would serve two primary purposes:
- Allow the state to own and hold Bitcoin as a financial asset.
- Enable individuals, including Texas residents, to donate Bitcoin to the state, fostering shared ownership and community investment.
Security and Management Guidelines
To ensure the safe custody of the Bitcoin reserve, the Texas Comptroller’s Office would be responsible for its administration. The bill outlines rigorous security protocols, including:
- Secure custody and storage solutions, emphasizing the use of cold storage to prevent unauthorized access.
- Regular audits to maintain transparency and accountability.
- Prohibitions on Bitcoin acquisitions from foreign entities or individuals linked to illegal activities.
Additionally, the bill allows for emergency provisions. In times of crisis, the governor or the Legislative Budget Board could authorize the sale or transfer of Bitcoin in the reserve, with all proceeds directed to the state treasury.
Oversight and Public Participation
A Texas Strategic Bitcoin Reserve Advisory Committee would be established to provide oversight and recommendations on managing the reserve. Composed of state legislators and financial officials, the committee would ensure adherence to best practices and evolving market conditions.
To encourage public engagement, the bill includes a recognition program for individuals who donate Bitcoin to the reserve. Furthermore, state funding for Bitcoin purchases would be capped at one percent of Texas’ unencumbered general revenue balance per biennial cycle, ensuring financial prudence.
What’s Next for the Bill?
If the bill garners a two-thirds majority in the legislature, it will take effect immediately. Otherwise, it is set to be enacted on September 1, 2025.
With this bold move, Texas continues to position itself as a leader in digital asset innovation, setting a precedent for other states to explore Bitcoin as a financial safeguard. If passed, this legislation could mark a significant shift in how states manage and invest in digital assets for long-term financial security.