Texas Legislator Proposes Bitcoin Purchase Limit of $250 Million

On March 10, 2025, Representative Ron Reynolds, a Democrat from Texas, introduced a bill that would limit the investments of local and national governments in cryptocurrencies as reserve assets. The proposal, House Bill 4258, stipulates that the state comptroller may invest a maximum of $250 million from the Economic Stabilization Fund – better known as the ‘rainy day’ fund – in Bitcoin or other cryptocurrencies. In addition, municipalities and counties in Texas would see their crypto investments limited to $10 million.

This bill comes shortly after the Texas Senate’s approval on March 6 of Senate Bill 21 (SB 21). This earlier proposal, submitted by Senator Charles Schwertner (Republican), establishes a strategic Bitcoin reserve and does not limit BTC purchases by the comptroller, according to the most recent draft. The timing of Reynolds’ proposal raises questions about unity within the state over crypto strategies.

The push for a Bitcoin reserve in Texas fits into a broader trend among US states, fueled by the arrival of President Donald Trump and Republican control of Congress. Lieutenant Governor Dan Patrick emphasized in January that a Texas Bitcoin Reserve is a priority for 2025. Should Reynolds’ bill become law and be signed by Governor Greg Abbott, it will take effect on September 1.

Tension between states and federal policy?

At the federal level, Trump signed an executive order on March 7 for a “Strategic Bitcoin Reserve” and “Digital Assets Stock”. However, legal experts doubt whether the president has the authority to enforce such policy through executive orders. Meanwhile, Senator Cynthia Lummis (Wyoming) introduced a bill on March 11 to anchor this reserve in the Senate, indicating federal ambitions that may clash with state plans.

It is unclear whether Reynolds wants to support or curb SB 21. His proposal seems to counterbalance Schwertner’s unlimited approach, suggesting division within Texas. As states like Texas chart their own course, the question grows: how do these local initiatives relate to Trump’s federal vision? The coming months will bring more clarity.