LIVE: Denton County runoff election results
Voters weighed in on several leadership positions.
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Information in this article comes from the Denton County Elections Office.
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Reps. August Pfluger, Buddy Carter say family members were saved from lethal Texas flooding
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House Democrat says climate change ‘obviously a part of' Texas flooding
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Gold, silver become legal tender in Texas under new law
AUSTIN (KXAN) — Texas has joined a growing movement of states establishing gold and silver currency systems, after Gov. Greg Abbott signed House Bill 1056 into law on June 29, creating what supporters call the most comprehensive precious metals transaction framework in the nation. The legislation allows Texans to use precious metals stored in the state-run Texas Bullion Depository for every day purchases through debit cards and mobile applications, positioning Texas alongside Arkansas, Florida, and Missouri as states advancing precious metals currency legislation this year. 'I signed a law authorizing Texans to use gold & silver as legal tender in day-to-day financial transactions,' Abbott announced via X. 'It fulfills the promise of Article 1, Section 10 of the U.S. Constitution.' The law, which takes effect in phases beginning September 2026, enables the Texas Comptroller to establish electronic systems that convert gold and silver holdings into U.S dollars at the point of sale. The full transactional currency system will be operational by May 1, 2027. During legislative hearings in March, supporters framed the measure as protection against inflation and a return to constitutional money principles. 'Money is three things, according to the Federal Reserve, it's a unit of account, it's a means of exchange, and it's a store of value,' testified Kevin Freeman, an economist and author. 'U.S. dollars are very good at one and two. They're good units of account and means of exchange, but a store of value, the dollar's lost, based on inflation statistics, 95% of its value in my lifetime.' Freeman cited strong public support, noting that Texas Proposition 7 received backing from '1.6 million voters. 76 and a half percent voted in favor of this, this type of transaction.' Jason Cozens, founder of Glint, a company already operating gold-backed payment cards, demonstrated the technology's feasibility during committee testimony. 'When I paid for instance, on Delta Airlines, I paid for my flight, I paid seven grams of gold. They had no idea that I was paying with gold,' Cozens told lawmakers. 'The governor's club in Tallahassee, dinner for a few of us, cost 1.9 grams of gold. They just accept MasterCard. They have no idea that I'm paying with gold.' Cozens emphasized that merchants face no additional costs or system changes, as the technology operates through existing MasterCard networks. However, there are concerns the law could face constitutional challenges. During a hearing for the bill, Victoria North, representing the Texas Comptroller's office, warned that implementing HB 1056 could expose state employees to criminal liability due to conflicts with federal currency laws. 'The United States, has the sole power to coin money. Under the Constitution, and if anyone, individual or state assumes to supplant the medium of exchange adopted by our government, or assumes to compete with the United States government, in this regard, a violation of these statutes would follow,' North testified, citing federal court precedent. North acknowledged she does not specialize in constitutional law and called HB 1056 'the only one' among bills she's reviewed that raises constitutional concerns. The bill's author, Rep. Mark Dorazio, R-San Antonio, argued the system doesn't 'coin money' but rather facilitates use of existing legal tender as permitted by the Constitution. 'In short, this bill makes gold and silver functional money,' Dorazio said during committee hearings, demonstrating his own Glint card. 'We view this as a continuation of Chairman Capriglione's 1984, regular session House Bill 483, which created the Texas bullion depository.' Arkansas, Florida and Missouri have also enacted similar bills this year, building on a movement that began with Utah's legal tender law in 2011 and Oklahoma's legislation in 2014. The Texas measure distinguishes itself through its electronic payment infrastructure, allowing practical everyday use rather than merely symbolic recognition of gold and silver as alternative money. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
