A Texas Democratic lawmaker has proposed legislation that would cap the state comptroller’s BTC investments at $250 million.
A member of the Texas legislature has drafted a bill to regulate how much cryptocurrency state and local officials can invest in as a reserve asset.
On March 10, Texas Representative Ron Reynolds introduced a bill to prevent the state comptroller from allocating more than $250 million of the Economic Stabilization Fund, or “rainy day“ fund, into Bitcoin and other digital assets.
The proposed law further states that Texas counties and municipalities cannot invest more than $10 million in cryptocurrency.
Texas senators voted on March 6 in favor of forming a strategic Bitcoin reserve, leading to the introduction of the proposed law.
The most recent draft of SB 21 shows that the Texas comptroller could potentially purchase Bitcoin for a reserve without any upper limit.
Following Donald Trump’s ascent to the presidency and the Republican majority in Congress, a wave of legislative initiatives emerged across various U.S. states.
Among these efforts was Texas’ ambitious plan to establish a strategic Bitcoin reserve. This initiative reflects a growing interest in cryptocurrency at the state level.
In January, Texas’ Lieutenant Governor Dan Patrick announced that the establishment of a Texas Bitcoin Reserve would be a significant agenda item during the state’s 2025 legislative session, highlighting its importance in future economic strategies.
Uncertainty surrounds Rep. Reynolds’ stance on the Bitcoin reserve bill—whether he intends to support Republican Senator Charles Schwertner’s proposal or introduce limits if it passes.
If lawmakers pass the bill and Governor Greg Abbott signs it, the law will take effect on September 1.
On March 7, Trump signed an executive order to form a federal “Strategic Bitcoin Reserve” and “Digital Asset Stockpile,” but legal scholars have debated whether he has the power to enact these policies via executive order.
On March 11, Wyoming’s Cynthia Lummis reintroduced a Senate bill to solidify the proposed Bitcoin reserve into law.
