AUSTIN, Texas, (July 9, 2025) – Texas Governor Greg Abbott has signed a bill into law that starts the process of officially recognizing gold and silver as legal tender in the state, and authorizes the state comptroller to establish a payment system using gold and silver held in the Texas State Bullion Depository.
Under House Bill 1049 (HB1056) sponsored by Rep. Mark Dorazio and more than 80 additional joint and coauthors, gold and silver specie imprinted with its weight and purity is considered legal tender in the state. State law defines specie as “coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency.”
However, an amendment added during the legislative process stipulates that gold and silver coins “marked in a way that indicates they were minted or issued by a government” are not considered legal tender the new law. This excludes common government-issued bullion coins such as the American Gold Eagle or Canadian Maple Leaf from the definition of legal tender.
The legislation also authorizes the Texas Comptroller to “establish or authorize one or more electronic systems that enable a depositor or vendor to make and receive payments using a currency backed by gold and silver bullion held in the depository.” It will be the comptroller’s responsibility to contract vendors to implement the system and adopt rules for its operation.
In practice, this will allow any person or business with a depository account to conduct business transactions with others using gold or silver.
The Senate passed HB1056 by a 19-12 vote. The House approved the measure 101-32. With Gov. Abbott’s signature, the legal tender provision will go into effect on September 1. The provisions authorizing the gold-backed transactional currency will go into effect on May 1, 2027.
IN PRACTICE
The passage of HB1056 takes a step against the fiat-based Federal Reserve system by creating a foundation to pull the rug out from under it on the state and local levels.
Practically speaking, the new law sets the stage for Texans to use some gold or silver bullion as money rather than as mere investment vehicles. They will ultimately also be able to transact business using gold or silver stored in the Texas State Bullion Depository.
The effect has been most dramatic in Utah, where the Specie Legal Tender Act opened the door for the development of a robust gold and silver economy in the state. With some legal hurdles cleared away by the state’s legal tender law, the United Precious Metal Association (UPMA), in partnership with Alpine Gold Exchange, set up the state’s first “gold bank.”
The Act has also led to the creation of the Goldback, a local, voluntary medium of exchange. Goldbacks are notes made from fractions of an ounce of physical gold. The company created a process that turns pure gold into a spendable physical form for small transactions.
New Hampshire also boasts a thriving gold and silver economy. While the state does not officially recognize bullion as legal tender, this has not deterred thousands of residents from using it in private transactions. Because there are no state tax barriers on precious metals, a favorable tax climate – combined with a population willing to embrace sound money – has positioned New Hampshire as another model for others to follow.
BACKGROUND
The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” Currently, all debts and taxes in most states are either paid with Federal Reserve Notes (dollars), which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury – very few of which have gold or silver in them.
The Federal Reserve destroys this constitutional monetary system by creating a monopoly based on its fiat paper currency. Without the backing of gold or silver, the central bank can easily create money out of thin air.
This not only devalues your purchasing power over time; it also allows the federal government to borrow and spend far beyond what would be possible in a sound money system. Without the Fed, the U.S. government wouldn’t be able to maintain all of its unconstitutional wars and programs. The Federal Reserve is the engine that drives the most powerful government in the history of the world.
State bills that facilitate and encourage the use of sound money create a playing field where people can push back against the Fed’s monetary malfeasance. Ultimately, it could create a scenario where people can drive out the “bad” fiat money with “good” sound money.
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