Texas State Senator Charles Schwertner has introduced legislation to create a Strategic Bitcoin Reserve. The proposed bill, Senate Bill 778, aims to make Texas the first state in the nation to hold Bitcoin as a financial asset, further solidifying its role as a hub for cryptocurrency and blockchain innovation.

The legislation, titled the "Texas Strategic Bitcoin Reserve Act," outlines the framework for establishing a state-administered reserve designed to leverage the strategic potential of bitcoin. According to the bill, the reserve would serve as a hedge against inflation and economic volatility while driving growth in the digital economy. 

Senator Schwertner emphasized the initiative’s importance, stating, "This would position our state at the forefront of the digital economy, driving growth and securing economic freedom for our great state."

The proposed reserve would be administered by the Texas Comptroller’s office, which would maintain custody of the bitcoin and ensure its secure storage using advanced custodial technologies such as cold storage. The bill prohibits transactions involving foreign entities or individuals engaged in illegal activity, emphasizing the state’s commitment to ethical governance.

The reserve is envisioned as a special fund outside the state’s general revenue, ensuring it is used exclusively for authorized purposes. In addition to appropriating funds for purchasing bitcoin, the bill allows for voluntary donations from individuals and organizations, making it a community-driven initiative. Donors would also have the option to receive acknowledgment certificates, further encouraging public participation.

Key features of the proposal include regular audits, secure management protocols, and transparency measures, such as biennial reporting by the comptroller. The reports would detail the total amount of bitcoin held, its estimated monetary value, and any transactions or expenditures related to the reserve. These measures are designed to build trust and accountability in the management of this digital asset.

The legislation also establishes an advisory committee comprising members of the legislature and other state officials to provide recommendations on the reserve's operations and structure. The committee will meet semiannually to review the reserve’s performance and ensure its alignment with the state’s financial goals.