Texas is stepping onto the battlefield of monetary reform, directly challenging the Federal Reserve’s dominance. House Bill 1062 (HB1062), spearheaded by Representative Mark Dorazio, aims to establish the Lone Star State as a beacon of financial independence. This legislation proposes acquiring $5 billion in precious metals—a bold move that signals more than just economic foresight. It’s a declaration against Washington’s fiat-driven policies.
If enacted, HB1062 will not only fortify Texas’s financial foundation but also inspire other states to join the fight for sound money. The ultimate goal? To insulate citizens from inflation, protect wealth, and challenge the status quo of paper money backed by little more than political promises.
The Texas Gold and Silver Plan: A Bold Blueprint
HB1062 outlines an ambitious strategy. Over the next two years, Texas plans to acquire $4 billion in gold and $1 billion in silver, storing these assets securely in the state’s Texas Bullion Depository. Operational since 2018, this facility is uniquely equipped to safeguard physical assets and reduce dependency on Federal Reserve notes.
But Texas isn’t stopping there. Companion bills HB1049 and HB1056 propose creating state-sanctioned digital currencies fully backed by gold and silver. Unlike fiat currencies, which can be printed without limits, these digital currencies would be redeemable for tangible metal, offering Texans a stable, inflation-resistant alternative.
“We’re not going to sit idly by while Washington devalues our money,” says Representative Dorazio. “Texans deserve currency they can trust—money that holds its value and protects their hard-earned savings.”
Why Now? The Federal Reserve’s Decades of Mismanagement
The timing of this initiative couldn’t be more critical. Inflation continues to erode the purchasing power of the dollar, while the national debt has surpassed $36 trillion, with no signs of slowing. Decades of Federal Reserve policies—printing trillions of dollars and manipulating interest rates—have created a fragile economy reliant on paper money with no intrinsic value.
Gold and silver, by contrast, have stood the test of time. Trusted for thousands of years, these metals serve as enduring stores of value, immune to the whims of central banks. Central banks globally have been purchasing gold at record levels in recent years—a clear acknowledgment of its stability amidst economic uncertainty.
Texas is following suit, but with a twist: integrating sound money principles into a modern financial system. This isn’t just a safeguard against inflation; it’s a roadmap to financial sovereignty.
Texas Joins a Growing Sound Money Revolution
Texas isn’t alone in its push for sound money. It’s part of a bold movement that includes 10 other states that already recognize gold and silver as legal tender. These pioneers are leading a financial revolution, rooted in Article 1, Section 10 of the U.S. Constitution, which mandates that no state shall make anything but gold and silver a tender in payment of debts.
These states are doing more than passing laws—they’re prioritizing the tangible, timeless value of precious metals over the fleeting promise of fiat currency. Let’s look at the trailblazers who have paved the way:
- Utah (2011): The first state to take action, Utah recognized U.S.-minted gold and silver coins as legal tender and removed state taxes on their exchange. This move ignited the modern sound money movement and set the standard for others to follow.
- Indiana (2013): Senate Bill 99 declared U.S.-minted gold and silver coins as legal tender while exempting them from taxation, establishing Indiana as a leader in monetary reform.
- South Carolina (2013): South Carolina aligned with constitutional principles by passing legislation to recognize gold and silver as legal tender, giving its residents an alternative to fiat currency.
- Kansas (2013): A groundbreaking bill in Kansas recognized gold and silver coins as legal tender and exempted them from state taxes, further cementing the state’s commitment to sound money.
- Louisiana (2014): With overwhelming legislative support, Louisiana eliminated sales taxes on gold and silver, offering residents a more secure way to preserve their wealth.
- Oklahoma (2014): Governor Mary Fallin signed Senate Bill 862 into law, recognizing gold and silver coins as legal tender and exempting them from taxation, a major step forward for sound money in the state.
- Arizona (2017): Arizona passed legislation that went even further, exempting gold and silver from capital gains taxes. This reinforced their status as legal tender and made Arizona a haven for sound money advocates.
- Wyoming (2018): Wyoming took a decisive step with HB103, recognizing gold and silver as legal tender and eliminating associated state taxes, giving residents a secure alternative to fiat money.
- West Virginia (2019): Senate Bill 502 received unanimous support, eliminating state taxes on gold and silver bullion and officially recognizing them as legal tender.
- Tennessee (2024): The newest member of this growing coalition, Tennessee enacted SB0350, exempting gold and silver from sales tax and recognizing them as legal tender, signaling the state’s commitment to financial stability.
A Nationwide Momentum for Monetary Reform
Other states are taking notice and joining the push for sound money:
- Florida (2023): Introduced legislation to recognize gold and silver as legal tender, promoting sound money principles in the Sunshine State.
- Missouri (2024): Advanced the Constitutional Money Act, eliminating capital gains taxes on precious metals and moving closer to adopting sound money standards.
- Mississippi (2024): Filed a bill to recognize gold and silver coins as legal tender, aligning with the growing call for tangible monetary value.
Together, these efforts represent a national push to return to constitutional money rooted in tangible value—not debt. By rejecting the Federal Reserve’s fiat monopoly, these states are empowering their residents to protect their wealth, preserve purchasing power, and ensure economic stability.
What’s at Stake: The Ripple Effect of HB1062
If Texas successfully implements HB1062, the impact could be transformative. William Greene of the Mises Institute predicts a phenomenon he calls “reverse Gresham’s Law.” In a fiat-dominated system, bad money drives out good. But when sound money reenters the equation, people gravitate toward currencies that retain their value—like gold and silver.
Here’s what Texas stands to gain:
- Economic Stability: By reducing reliance on Federal Reserve notes, Texas can insulate itself from national economic turbulence.
- Wealth Magnet: Investors and businesses may flock to Texas, drawn by the promise of financial security and stability.
- Innovative Banking: Texans could bank with institutions dealing in gold- and silver-backed currency, providing unparalleled protection for savings.
This isn’t just about financial independence for Texas; it’s a blueprint for other states to follow.
Challenges on the Horizon
Revolutions are never without resistance. The Federal Reserve, along with proponents of fiat money, is unlikely to welcome this challenge. Critics may argue that gold and silver lack the liquidity and flexibility of fiat money, and transitioning to sound money will require significant investment and infrastructure.
Yet Texas has never backed down from a fight. From establishing the Texas Bullion Depository to leading the sound money movement, the state has proven it has the determination and resources to see this through.
A New Chapter in American Monetary History
At its core, HB1062 isn’t just about Texas—it’s about the future of American money. For decades, Federal Reserve policies have devalued the dollar, undermining the wealth of everyday citizens. Texas’ bold initiative offers a way out: a path to financial stability, wealth preservation, and monetary independence.
Should Texas succeed, it could trigger a seismic shift in America’s financial landscape. Other states are already watching closely, and the potential benefits—economic resilience, investor confidence, and first-mover advantage—are too significant to ignore.
As Representative Dorazio said, “This isn’t just about protecting Texas—it’s about setting an example for the rest of the country.”
The Lone Star State has drawn a line in the sand. The question is: Who will join them? One thing is certain—this revolution is only just beginning.
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