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Bill

Bill

SB 778

Relating to the establishment and administration of the Texas Strategic Bitcoin Reserve; making an appropriation.

89th Legislature (2025) Introduced by Charles Schwertner

Texas would establish a state-owned Bitcoin reserve to purchase and hold cryptocurrency as a strategic asset, betting taxpayer funds on the digital currency's future appreciation.

Referred to Finance
#comptrollerofpublicaccounts(v2608) #currency&currencyexchange(s0335) #financial--general(i0365) #governor(i0375) #lieutenantgovernor(s0096) #speakerofthehouse(s0306) #statefinances--management&control(i0748) #texasstrategicbitcoinreserveact(pr0ie) #texasstrategicbitcoinreserveadvisorycommittee(vb9vd)
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Bill Summary · SB 778

Legislative bill overview

SB 778 would establish a Texas Strategic Bitcoin Reserve, allowing the state to acquire and hold Bitcoin as a strategic asset. The bill includes an appropriation to fund the initial purchase and administration of this reserve, positioning Texas as the first state to create an official government Bitcoin holdings program.

Why is this important

This represents a significant shift in how state governments treat cryptocurrency—moving from skepticism to active investment. The reserve could generate substantial returns if Bitcoin appreciates, but also exposes Texas taxpayers to volatility and potential losses on a novel asset class with uncertain long-term regulatory status.

Potential points of contention

  • Fiscal risk: Bitcoin's extreme price volatility means the reserve's value could swing wildly, creating budget uncertainty and potential losses for taxpayers
  • Regulatory uncertainty: Federal cryptocurrency regulations remain in flux; future policy changes could affect the reserve's viability or legal status
  • Opportunity cost: Funds allocated to Bitcoin purchases represent money not spent on traditional infrastructure, education, or services
  • Precedent concern: Success could prompt other states to follow, potentially driving up Bitcoin prices and creating a speculative asset bubble
  • Governance questions: Unclear how buying/selling decisions would be made, who controls the keys, and how theft or loss would be handled

Compiled from official sources — confirm details with the bill’s official record.

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