Texas Bill Proposes $250 Million Cap on Bitcoin Investments

YEREVAN (CoinChapter.com) — Texas Representative Ron Reynolds has introduced House Bill 4258 (HB 4258) to restrict the state’s Bitcoin investments. The bill, filed on March 10, proposes that the Texas comptroller cannot invest more than $250 million from the Economic Stabilization Fund, also known as the rainy day fund, in Bitcoin (BTC) or other cryptocurrencies.

The bill also proposes a separate limit for municipalities and counties, preventing them from investing more than $10 million in cryptocurrency. These restrictions contrast with Senate Bill 21 (SB 21), which the Texas Senate passed on March 6. The SB 21 bill allows for a state Bitcoin reserve with no cap on Bitcoin purchases.

Texas House Bill 4258 Proposes $250 Million Cap on State Bitcoin Investments. Source: Texas Legislature Texas Bitcoin Reserve Plan Moves Forward with Bill

The Texas Bitcoin Reserve has been part of broader legislative efforts in the state. Lieutenant Governor Dan Patrick listed the proposal as a priority for 2025.

Lt. Gov. Dan Patrick Announces Top 40 Legislative Priorities for Texas Senate in 2025. Source: Texas Senate Web

The SB 21 bill, introduced by State Senator Charles Schwertner, would allow the Texas comptroller to buy Bitcoin without limits.

Senator Charles Schwertner Introduces SB 778 to Establish Texas Strategic Bitcoin Reserve. Source: X (@DrSchwertner)

However, HB 4258, introduced by Rep. Ron Reynolds, aims to set restrictions on state cryptocurrency investments. The bill does not indicate whether Reynolds supports or opposes the Texas Bitcoin Reserve or if it is meant as a precaution if SB 21 becomes law.

If HB 4258 passes, it would move to Governor Greg Abbott for approval. If signed, it would take effect on Sept. 1, 2025.

Federal and State Bitcoin Policies Show Differences

At the federal level, the approach to Bitcoin reserves has also gained attention. On March 7, President Donald Trump signed an executive order to create a federal Strategic Bitcoin Reserve and a Digital Asset Stockpile. Some legal experts have questioned whether a president can establish such reserves through executive orders.

Additionally, Wyoming Senator Cynthia Lummis reintroduced legislation on March 11 to formally codify a federal Bitcoin reserve into law. The proposal aligns with efforts at the state level, where multiple bills, including SB 21 and HB 4258, seek to define Bitcoin’s role in government reserves.

Senator Cynthia Lummis Reintroduces BITCOIN Act to Establish U.S. Strategic Bitcoin Reserve. Source: X (@SenLummis)

The Texas legislature continues to debate how much the state should invest in Bitcoin, while at the federal level, lawmakers are working to determine whether Bitcoin reserves should become part of national policy.