A member of the Texas legislature has proposed a bill that could limit the amount local and state authorities invest in cryptocurrency as a reserve asset. In a bill filed on March 10, Texas Representative Ron Reynolds proposed that the state’s comptroller not be allowed to invest more than $250 million of its Economic Stabilization Fund — otherwise known as a ‘rainy day’ fund — in Bitcoin (BTC) or other cryptocurrencies. The legislation also suggests that Texas municipalities or counties could not invest more than $10 million in crypto.
HB 4258, filed by Texas Representative Ron Reynolds. Source: Texas legislature
The proposed bill follows the Texas Senate passing legislation on March 6 to establish a strategic Bitcoin reserve in the state. The SB 21 bill seemingly allows the Texas comptroller to purchase BTC for a reserve without a specified limit, based on the most recent draft.
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The plan for a strategic Bitcoin reserve in Texas is part of a broader initiative involving multiple bills proposed across U.S. state governments following the inauguration of President Donald Trump and the Republican Party gaining control of both the House of Representatives and the Senate. Texas Lieutenant Governor Dan Patrick indicated in January that the state’s legislative priorities for 2025 would include establishing a Texas Bitcoin Reserve.
Is there a Partisan Divide on State and Federal Crypto Plans?
It remains unclear whether Rep. Reynolds, a Democrat, intended to support the BTC reserve bill introduced by Republican State Senator Charles Schwertner or to propose restrictions in case the legislation becomes law. If passed and signed by Governor Greg Abbott, the bill would take effect on September 1. Cointelegraph reached out to Rep. Reynolds’ office for comment but did not receive a response at the time of publication.
While Trump signed an executive order on March 7 to create a federal ‘Strategic Bitcoin Reserve’ and a ‘Digital Asset Stockpile’, many legal experts have questioned the authority of the president to enact specific policies through executive orders. On March 11, Wyoming Senator Cynthia Lummis reintroduced legislation in the Senate aimed at codifying the proposed BTC reserve into law.
