A member of the Texas Legislative Assembly proposed a bill that could limit the amount that local and state authorities invest in cryptocurrency as a reserve ratio.
In a bill tabled on March 10, Texas representative Ron Reynolds proposed that the State controller is not authorized to invest more than $ 250 million in his economic stabilization fund – otherwise known as a “rainy day” – in Bitcoin (BTC) or other cryptocurrencies. The legislation also suggested that the municipalities or the counties of Texas could not invest more than $ 10 million in crypto.
HB 4258, tabled by the representative of Texas Ron Reynolds. Source: Texas legislature
The proposed bill followed the adoption legislation of the Texas Senate on March 6 to establish a Bitcoin strategic reserve in the State. The SB 21 bill could apparently allow the Texas controller not to have a BTC purchase limit for a reserve, on the basis of the most recent project.
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The plan of a Bitcoin strategic reserve in Texas was one of the many separate bills proposed in the governments of the American states following the inauguration of President Donald Trump and the Republican legislators who won control of the House of American Representatives and the Senate. Lieutenant-Governor of Texas, Dan Patrick, declared in January that the legislative priorities of the State for 2025 include a proposal to establish a bitcoin reserve of Texas.
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We do not know if the Reynolds representative, a democrat, intended to support the BTC reserve bill presented by the senator from the State Charles Schwertner, republican, or propose restrictions in the event that legislation becomes the law. If it is adopted and signed by Governor Greg Abbott, the bill would take effect on September 1. Cointelegraph contacted the office of the Reynolds representative but did not receive an answer at the time of publication.
Although Trump signed a decree on March 7 to create a “federal strategic bitcoin reserve” and “digital asset stocks”, many legal experts questioned the authority of the American president to adopt specific policies through EO. The Wyoming senator, Cynthia Lummis, reintroduced the legislation on March 11 to codify the BTC reserve proposed in the Senate.
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