A Texas lawmaker has suggested new laws limiting public money allotted to bitcoin investments, therefore changing the state’s attitude toward accepting digital assets.
Introduced by Representative Ron Reynolds on March 10, the measure calls for Texas not to spend more than $250 million from its Economic Stabilization Fund—also known as the “Rainy Day Fund”—on Bitcoin or any other cryptocurrency. The plan also calls for a $10 million cap on municipal and county crypto investments all over the state.
This project tracks the recent passage of a separate bill targeted at building a state-backed Bitcoin reserve by the Texas Senate. Reynolds’s measure adds particular restrictions to reduce possible financial risks connected with crypto market volatility, unlike the Senate proposal, which does not impose an investment ceiling.
The proposed limitations would take effect on September 1, 2025, if approved. The measure has spurred debates about juggling financial innovation with risk management, particularly as Texas continues to establish itself as a leader in digital assets. Advocates of the free Bitcoin reserve contend that such a project may diversify Texas’ financial portfolio and improve the state’s reputation in the crypto space.
State officials, notably Lieutenant Governor Dan Patrick, have previously indicated support for Texas increasing its engagement in cryptocurrencies. Reynolds’ suggested cap, however, emphasizes mounting worries about regulatory uncertainty and market swings.
The argument in Texas mirrors more general national conversations over government crypto investments. Although legal experts have doubted its enforcement, a federal executive order establishing a “Strategic Bitcoin Reserve” was lately released. Other states are also looking at including digital resources in their budgets.
Texas’ choice of Bitcoin investment might set a standard for how state governments handle cryptocurrencies going forward as legislators on both sides of the issue weigh in.
