Commemorative bitcoin coins are in Yichang, Hubei province, China, on December 5, 2024. (Photo by Costfoto/NurPhoto via Getty Images)
AUSTIN, Texas – Lawmakers in the Texas Senate are looking to diversify the state’s cash reserves into something a little more digital.
Sen. Charles Schwertner (R-Georgetown) introduced a bill on Wednesday that would create the Texas Strategic Bitcoin Reserve.
The bill would not only establish a bitcoin reserve for the state, but also direct the comptroller’s office to form a five-person committee to oversee the reserve.
Governor Greg Abbott, a strong proponent of cryptocurrency, posted an eyeball emoji in reaction to a post about the bill.
What is a bitcoin reserve?
What we know:
The establishment of a bitcoin reserve would allow the state comptroller to invest state funds in certain cryptocurrencies.
The bill states that investment in cryptocurrencies can enhance the state’s financial resilience and “serve as a hedge against inflation and economic volatility.”
The comptroller would be limited in which cryptocurrencies the state could invest in, requiring the currency to carry a market capitalization of at least $500 billion over a 12-month period.
A market capitalization in cryptocurrency is the total value of coins that have been mined.
Currently, the only cryptocurrency with a market cap above that number is Bitcoin with a $1.9 trillion cap, according to Coinbase.
What we don’t know:
The bill does not list a minimum value or an initial investment for the reserve, just that the state creates one.
There is no time frame listed for how long assets must be held in the reserve before it can be resold or spent, though it does say that crypto held in the reserve can be temporarily moved to the state treasury if needed.
Crypto reserves at the national level
Just after he returned to office, President Donald Trump signed an executive order that seeks to clarify regulations in the crypto industry.
WASHINGTON, DC – JANUARY 23: U.S. President Donald Trump holds up a signed executive order in the Oval Office of the White House on January 23, 2025 in Washington, DC. Trump signed a range of executive orders pertaining to issues including crypto cur
Trump’s order establishes the Presidential Working Group on Digital Asset Markets, which will develop a federal regulatory framework for digital assets, including stablecoins, and evaluate the creation of a strategic national digital assets stockpile, according to Fox Business.
Last year, a bill filed in the US Senate by Sen. Cynthia Lummis (R-Wy.) looked to establish a national bitcoin reserve.
The bill would have directed the Department of Treasury to purchase 1 million bitcoins over a five-year period to be held in a trust for at least 20 years.
What is cryptocurrency and how it works?
Cryptocurrency, or crypto, is a form of digital asset that is secured by cryptography and the blockchain.
Cryptocurrency networks are independently verified by a matrix of computers that record all transactions and ensure a consensus through the chain, meaning transactions cannot be prevented, blocked or changed.
Priority Bills
The bill is one of 25 pieces of legislation that Lt. Gov. Dan Patrick tagged as a priority bill.
Patrick said he would expand the list to 40 bills soon.
Dig deeper:
- Senate Bill 1 – Senate’s Budget for Texas
- Senate Bill 2 – Providing School Choice
- Senate Bill 3 – Banning THC in Texas
- Senate Bill 4 – Increasing the Homestead Exemption to $140,000 ($150,000 for seniors)
- Senate Bill 5 – Combatting Alzheimer’s – Establishing DPRIT (Dementia Prevention & Research Institute of Texas)
- Senate Bill 6 – Increasing Texas’ Electric Grid Reliability
- Senate Bill 7 – Increasing Investments in Texas’ Water Supply
- Senate Bill 8 – Requiring Local Law Enforcement to Assist the Federal Government’s Deportation Efforts
- Senate Bill 9 – Reforming Bail – Keeping Violent Criminals Off Our Streets
- Senate Bill 10 – Placing the Ten Commandments in School
- Senate Bill 11 – Protecting the Freedom to Pray in School
- Senate Bill 12 – Establishing a Parental Bill of Rights in Public Education
- Senate Bill 13 – Guarding Against Inappropriate Books in Public Schools
- Senate Bill 14 – Texas DOGE – Improving Government Efficiency
- Senate Bill 15 – Removing Barriers to Affordable Housing
- Senate Bill 16 – Stopping Non-Citizens from Voting
- Senate Bill 17 – Stopping Foreign Adversaries’ Land Grabs
- Senate Bill 18 – Stopping Drag Time Story Hour
- Senate Bill 19 – Stopping Taxpayer Dollars for Lobbyists
- Senate Bill 20 – Stopping AI Child Pornography
- Senate Bill 21 – Establishing the Texas Bitcoin Reserve
- Senate Bill 22 – Establishing Texas as America’s Film Capital
- Senate Bill 23 – Removing the Cap on the Rainy Day Fund to Secure Texas’ Long-term Financial Future
- Senate Bill 24 – Educating Texas Students on the Horrors of Communism
- Senate Bill 25 – Making Texas Healthy Again
The Source: Information in this article comes from the Texas legislature and Fox Business.
