Texas and Oklahoma are taking bold steps in leading the way to integrate Bitcoin into state finances. Recently, both lawmakers from both the states have introduced legislation proposing Bitcoin reserves in the respective US states.

Texas Senate Bill SB 778

Texas Senator Charles Schwertner announced the submission of Bill SB 778. This bill proposes the establishment of the first-ever state-level Bitcoin strategic reserve in the United States. 

Schwertner, a strong proponent of Bitcoin’s potential, emphasized the need for Texas to lead this initiative, calling it a chance to enhance economic growth and financial freedom.

The state's largest budget surplus positions Texas to leverage Bitcoin strategically. By integrating Bitcoin into the state’s financial framework, Texas hopes to become a leader in the digital economy. Senator Schwertner expressed confidence in the bill's potential, highlighting Texas’ ambition to be the first state to implement such a reserve.

It's time for Texas to lead the way in establishing a Strategic Bitcoin Reserve. That’s why I filed SB 778, which, if passed and signed into law, would make Texas the first state in the nation to establish a Strategic Bitcoin Reserve, ” Schwertner shared on X (formerly Twitter).

The Texas Strategic Bitcoin Reserve Act, filed by state lawmaker Giovanni Capriglione on December 12, also supports this initiative. Under the proposal, Texas’ comptroller would hold Bitcoin as a reserve asset for a minimum of five years. 

Oklahoma Presents House Bill 1203

Oklahoma is not far behind in adopting Bitcoin reserves. Representative Cody Maynard introduced House Bill 1203, the Strategic Bitcoin Reserve Act. This bill proposes that Oklahoma allocate portions of its state savings accounts and pension funds to Bitcoin. 

Much like Texas, Oklahoma views Bitcoin as a safeguard against inflation and a potential tool for financial security. Maynard firmly believes that Bitcoin represents freedom from inflationary pressures and the manipulations of government entities. He stated:

“Bitcoin represents freedom from bureaucrats printing away our purchasing power,” Maynard said. “As a decentralized form of money, Bitcoin cannot be manipulated or created by government entities. It is the ultimate store of value for those who believe in financial freedom and sound money principles.”

The bill aligns with broader political trends, notably the views of President-elect Donald Trump, who supports digital assets and financial stability. According to Maynard, Bitcoin’s decentralized nature and finite supply make it an ideal asset for state funds. With the proposed legislation, Oklahoma would diversify its investments, ensuring reliable returns while preserving citizens' purchasing power.

The Growing Trend of Bitcoin Reserve Legislation

Texas and Oklahoma are not alone in their pursuit of Bitcoin as a strategic reserve. Several other states are exploring similar proposals, recognizing the importance of digital assets in public finance. Pennsylvania, for instance, proposed investing up to 10% of its state treasury in Bitcoin. 

Lawmakers like Representative Mike Cabell are looking at the example set by private asset managers like BlackRock and Fidelity, who have already integrated Bitcoin into their portfolios.

In January 2024, both North Dakota and New Hampshire introduced their own Bitcoin reserve bills. Notably, New Hampshire’s legislation uses the broader term “digital assets,” hinting at potential interest in cryptocurrencies beyond Bitcoin.

The movement to incorporate Bitcoin into state and public finances extends beyond the United States. Countries like Japan, Switzerland, and Russia are exploring strategies to integrate Bitcoin into their financial systems. Cities like Vancouver have already made strides by approving Bitcoin as part of their municipal reserves.