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.

A new bill introduced in the Texas legislature could place limits on how much cryptocurrency state and local governments can invest in, according to a report by Block.

The bill, filed on March 10 by Representative Ron Reynolds, proposes a $250 million cap on Bitcoin or other cryptocurrency investments made from Texas’ Economic Stabilization Fund—colloquially known as the state’s “rainy day” fund.

Additionally, it would restrict individual municipalities or counties to a maximum of $10 million in crypto holdings.

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 by Senator Reynolds (R-Montgomery), does not currently specify a cap on Bitcoin purchases, potentially leaving 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.

Earlier this year, Florida lawmakers passed a bill permitting state and local governments to invest in cryptocurrency, while President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile. However, legal experts have raised questions about the president’s authority to integrate such programs through executive action.

Senator Cynthia Lummis of Wyoming is also currently working to introduce a bill in Congress that would aim to formally codify the federal Bitcoin reserve into law.

If approved by the Texas House and Governor Greg Abbott, the legislation will come into effect on September 1.