On March 10, 2025, Texas Representative Ron Reynolds introduced House Bill 4258, aiming to limit the state's investment in Bitcoin and other cryptocurrencies to $250 million.

This legislation seeks to cap the amount the state's comptroller can allocate from the Economic Stabilization Fund—commonly known as the "rainy day" fund—into digital assets. Additionally, the bill proposes that individual municipalities or counties in Texas should not invest more than $10 million in cryptocurrencies. ​

This proposal follows the Texas Senate's recent approval of Senate Bill 21, which allows the establishment of a strategic Bitcoin reserve without specifying an investment limit. The introduction of HB 4258 reflects a more cautious approach, aiming to set clear boundaries on the state's cryptocurrency investments.​

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The move to create a Bitcoin reserve aligns with broader trends across the United States, where several states are exploring similar initiatives. Texas, in particular, has been at the forefront of cryptocurrency adoption, with its favorable regulatory environment attracting numerous blockchain and crypto-related businesses. The proposed cap in HB 4258 indicates a balanced approach, seeking to benefit from digital asset investments while managing potential risks.​

As discussions continue, stakeholders and policymakers will need to weigh the potential benefits of cryptocurrency investments against the inherent volatility of digital assets. The outcome of this legislative process could set a precedent for how other states approach cryptocurrency investments in the future