Texas is preparing to launch its first state-level Bitcoin reserve, making it the first state in the U.S. to do so. The bill, SB 778, was filed by Senator Charles Schwertner, who announced the move in a recent Twitter/X post.
According to the bill, the state will create a strategic Bitcoin reserve, which will be managed by the comptroller. The comptroller will be authorized to purchase, sell, or hold Bitcoin on behalf of the state. The bill also establishes the Texas Strategic Bitcoin Reserve Advisory Committee, which will advise the comptroller on the management of the reserve.
The committee will consist of the House chairs for Appropriations and Finance, a comptroller, a member of the Senate and the House, among others. The committee will meet at least once a year to review the performance of the reserve and make recommendations to the comptroller.
The bill also outlines the purpose of the reserve, which is to hold BTC as a financial asset and to promote shared ownership and a sense of community among Texans. The bill also specifies that persons, including Texans, can donate Bitcoin to the reserve.
However, the bill also outlines specific transactions that will not be allowed. For example, Section 403.705 indicates that the comptroller cannot approve transactions to buy BTC to be held in other countries.
The move by Texas comes amid a growing interest in crypto among U.S. states. Several other states, including Oklahoma, Pennsylvania, and Wyoming, are also considering measures to add crypto to their reserves.
Oklahoma has already shared its plans to hold the premier digital currency as part of its currency reserves. Representative Cody Maynard filed HB 1203, the Strategic Reserve Act, which aims to allocate a portion of the state’s pension funds to buy these digital assets.
Pennsylvania lawmakers also submitted their plans to invest in Bitcoin. The state’s policymakers suggest that the state’s Treasury allocate up to 10% of the funds to buy crypto. Representative Mike Cabell says the state can follow the lead of private financial firms like Fidelity and BlackRock.
