Texas Senator Reynolds introduced a new crypto-related bill before the Senate. The proposed legislation allocates $250 million from the state’s economic stabilization fund to Bitcoin and other digital assets.
Texas state representative Ron Reynolds introduced the third Bitcoin-related bill to the Senate. The bill proposes granting the state’s comptroller direct authority to invest in cryptocurrencies. The new legislative proposal expands on the provisions of the two previous bills.
Texas introduces third Bitcoin reserve bill adding to previous provisions
Texas House Bill 4258 relates to the authority of the comptroller of public accounts and other political subdivisions in the state. It proposes that the parties cited be granted authority to invest in specific cryptocurrencies.
⚡️BREAKING:
TEXAS PROPOSES BITCOIN RESERVE BILL (HB 4258), ALLOWING STATE INVESTMENTS UP TO $250M & MUNICIPALITIES UP TO $10M
THIS IS HUGE! pic.twitter.com/qSiTDtlLYr
— Litest (@LitestApp) March 11, 2025
The bill expands on the previous proposals and adds provisions on investment limits. It proposes that Texas’ chief accountant and financial watchdog invest up to $250 million from the state’s economic stabilization fund in Bitcoin and other cryptocurrencies.
It also cites municipalities and counties to allow them to hold up to $10 million in digital assets. The bill also amends the enactment date to September 1, 2025, if it is passed into law.
Texas lawmakers are currently evaluating two other crypto-related bills. Senator Charles Schwertner introduced Senate Bill 778 and Senate Bill 21 on January 14 and February 12, respectively. Senate Bill 21 passed the Texas Senate on March 6 and has yet to be tabled before the House. It was initially introduced as an exclusive Bitcoin Bill during its first reading. The lawmakers later revised it to reflect other digital assets to expand the investment scope. The bill proposed creating a Texas Strategic Bitcoin Reserve separate from the treasury.
It mandated the Texas chief accountant as the reserve’s manager, who would have the power to determine how much should be invested into the fund. The comptroller also had discretionary authority to sell Bitcoin in the reserve following the prudent investor standard used in traditional finance.
The bill specifies that the Bitcoin reserve would acquire, hold and manage accumulated Bitcoin. It also contains provisions allowing the state to accept private donations in Bitcoin. The bill highlights that all donations should be deposited into the reserve as property of the state and would be managed in the same manner as any other asset in the state treasury.
The legislation required that any digital asset held in the reserve have a market capitalization of over $500 billion over the past 12 months. When the bill was introduced, Bitcoin was the only cryptocurrency that met this requirement.
Texas Senate Bill 778 proposes long-term Bitcoin custody rather than active reserve management. The provision requires the Texas treasury to acquire and hold Bitcoin as a strategic asset. It also prohibits the comptroller from selling its Bitcoin holdings before a five-year lapse.
Both bills specified that the establishment of the Bitcoin reserve aligned with Texas’ commitment to fostering innovation in digital assets. They add that the Texas government aims to provide financial security to its residents using digital assets.
Texas is among the states in the United States of America that are evaluating Bitcoin reserve legislation. Arizona’s Bitcoin reserve bill passed the Senate Finance Committee stage in January. If enacted, it would allow the state to invest up to 10% of its public funds in Bitcoin.
Oklahoma House Bill 1203 also passed the House committee on February 25. It is set to be tabled before the house for debate or amendment before being voted upon. House Representative Cody Maynard introduced the bill in January. If passed, the bill will allow the Oklahoma state treasurer to invest public funds into digital assets with a market cap of over $500 billion.
The Utah Senate passed its Blockchain and Digital Innovation Amendment bill on Monday. However, before its final approval, the lawmakers scrapped the Bitcoin reserve provision. The amended legislation will allow Utah citizens to maintain custody of their digital assets and mine Bitcoin.
