Gov. Greg Abbott has signed into law a measure allowing Texans to use precious metals in day-to-day financial transactions, despite the objections of banking lobbyists.
House Bill 1056 by State Rep. Mark Dorazio (R–San Antonio) allows Texans to deposit precious metals with the Texas Bullion Depository in Leander and use a debit card system for purchases, similar to traditional currency.
It invokes a frequently overlooked provision in the U.S. Constitution that permits the state comptroller to authorize the use of gold and silver as currency.
Article 1, Section 10 of the U.S. Constitution states, “No state shall coin money, emit bills of credit, or make anything but gold and silver coin a tender in payment of debts.”
Under the new law, the comptroller’s office will contract with a debit card provider to facilitate transactions.
Texans will be able to deposit gold or silver into their accounts, and the debit card will convert those holdings into dollar amounts at the point of sale. While specific details—such as transaction fees and merchant participation—are still being developed, the system is expected to function much like a standard debit card.
The law is set to take effect on May 1, 2027, allowing state agencies time to establish necessary infrastructure and regulations. The comptroller’s office is expected to release additional guidance and may conduct pilot programs or public education campaigns to ensure a smooth rollout.
While final details of this program have yet to emerge, economist Kevin Freeman outlined the concept in his book “Pirate Money.”
Don Huffines, candidate for Texas comptroller, praised the move and pledged to “ensure this system is secure, transparent, and accessible, with real-time pricing, fraud protection, and no government tracking or central bank control.”
Current Comptroller Glenn Hegar and 2026 comptroller candidates Kelly Hancock—who is the current chief clerk at the comptroller’s office and will assume control of the agency next month—and Christi Craddick have not commented on Abbott’s approval of the bill, though Hancock supported the measure as a senator.
Texas Republican voters overwhelmingly supported a ballot measure in favor of this concept during the 2024 primary cycle.
Ballot Proposition 7 stated: “The Texas Legislature should establish authority within the Texas State Comptroller’s office to administer access to gold and silver through the Texas Bullion Depository for use as legal tender.” It passed with 76 percent of Republican voters in support.
HB 1056 had support from several grassroots organizations and fulfilled plank 32 of the Republican Party of Texas platform.
During a House floor debate over the measure in May, State Rep. Charlie Geren (R–Fort Worth) attached an amendment that would have required permission from a federal court before the new law could go into effect. However, Geren’s amendment was stripped in a conference committee.
Following final legislative approval, bank lobbyists attempted to persuade Abbott to veto the measure, but those efforts failed.
