Texas Bill Proposes Limits On Cryptocurrency Investments

According to Cointelegraph, a new bill has been introduced in the Texas legislature that aims to restrict the amount of cryptocurrency investments by local and state authorities. Texas Representative Ron Reynolds filed the bill on March 10, proposing that the state's comptroller should not invest more than $250 million of the Economic Stabilization Fund, commonly referred to as the 'rainy day' fund, in Bitcoin or other cryptocurrencies. Additionally, the bill suggests that Texas municipalities or counties should be limited to investing no more than $10 million in crypto assets. This legislative move comes after the Texas Senate passed a bill on March 6 to establish a strategic Bitcoin reserve for the state. The Senate Bill 21, in its latest draft, appears to allow the Texas comptroller to purchase Bitcoin without any investment cap for the reserve. The strategic Bitcoin reserve plan is part of a series of bills proposed across various U.S. state governments following the inauguration of U.S. President Donald Trump and the Republican Party gaining control of both the U.S. House of Representatives and Senate. Texas Lieutenant Governor Dan Patrick announced in January that establishing a Texas Bitcoin Reserve is among the state's legislative priorities for 2025. The introduction of the bill raises questions about potential partisan divides on cryptocurrency policies at both state and federal levels. Representative Reynolds, a Democrat, has not clarified whether he supports the Bitcoin reserve bill introduced by Republican State Senator Charles Schwertner or if he intends to impose restrictions should the legislation be enacted. If the bill is passed and signed by Governor Greg Abbott, it would become effective on September 1. Cointelegraph attempted to contact Representative Reynolds for comments but did not receive a response before publication. Meanwhile, President Trump signed an executive order on March 7 to establish a federal 'Strategic Bitcoin Reserve' and 'Digital Asset Stockpile.' However, this move has sparked debate among legal experts regarding the president's authority to implement specific policies through executive orders. In a related development, Wyoming Senator Cynthia Lummis reintroduced legislation on March 11 to formally incorporate the proposed Bitcoin reserve into law in the Senate.