Texas lawmaker seeks to cap states proposed BTC purchases at $250M
Texas Lawmaker Proposes Limits on State and Local Bitcoin Investments
A newly introduced bill in the Texas legislature could impose restrictions on how much cryptocurrency state and local governments can hold as a reserve asset.
Filed on March 10 by Representative Ron Reynolds, the bill proposes a cap of $250 million on Bitcoin or other cryptocurrency investments made from Texas Economic Stabilization Fundcommonly known as the states rainy day fund. Additionally, it would limit individual municipalities or counties to a maximum of $10 million in crypto holdings.
A Response to Texas Push for a Bitcoin Reserve
This proposal comes just days after the Texas Senate passed SB 21, a bill allowing the state to establish a strategic Bitcoin reserve. The Senate legislation, introduced on March 6, does not currently specify a cap on Bitcoin purchases, potentially allowing the Texas comptroller to acquire an unlimited amount for state reserves.
Lieutenant Governor Dan Patrick previously announced that creating a Texas Bitcoin Reserve was a key legislative priority for 2025. The proposal aligns with a broader trend of Republican-led initiatives across several states seeking to integrate Bitcoin into government financial strategies, especially following President Donald Trumps return to office.
Political Uncertainty Around Crypto Policies
It remains unclear whether Rep. Reynolds, a Democrat, introduced his bill to complement or counter the Republican-led push for a Texas Bitcoin reserve. If passed and signed into law by Governor Greg Abbott, the legislation would take effect on September 1.
On a federal level, the debate over government-held Bitcoin continues to evolve. President Trump recently signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile, but legal experts question whether the president has the authority to enforce such policies through executive action. Meanwhile, Senator Cynthia Lummis of Wyoming has reintroduced a bill in Congress seeking to formally codify the federal Bitcoin reserve into law.
As the legislative process unfolds, the future of state-backed cryptocurrency reserves in Texas and beyond remains uncertain, with potential implications for the broader U.S. approach to digital asset adoption.
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