A member of the Texas legislature has proposed a invoice that would restrict the quantity native and state authorities put money into cryptocurrency as a reserve asset.
In a invoice filed on March 10, Texas Consultant Ron Reynolds proposed the state’s comptroller not be allowed to make investments greater than $250 million of its Financial Stabilization Fund — in any other case often known as a “wet day” fund — in Bitcoin (BTC) or different cryptocurrencies. The laws additionally instructed that Texas municipalities or counties couldn’t make investments greater than $10 million in crypto.
HB 4258, filed by Texas Consultant Ron Reynolds. Supply: Texas legislature
The proposed invoice adopted the Texas Senate passing legislation on March 6 to set up a strategic Bitcoin reserve within the state. The SB 21 invoice seemingly may enable the Texas comptroller to don’t have any restrict on buying BTC for a reserve, primarily based on the newest draft.
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The plan for a strategic Bitcoin reserve in Texas was one in every of many separate payments proposed in US state governments following the inauguration of President Donald Trump and Republican lawmakers successful management of the US Home of Representatives and Senate. Texas Lieutenant Governor Dan Patrick said in January that the state’s legislative priorities for 2025 would come with a proposal to set up a Texas Bitcoin Reserve.
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It’s unclear if Rep. Reynolds, a Democrat, meant to assist the BTC reserve invoice launched by State Senator Charles Schwertner, a Republican, or suggest restrictions within the occasion the laws turns into legislation. If handed and signed by Governor Greg Abbott, the invoice would take impact on Sept. 1. Cointelegraph reached out to Rep. Reynolds’ workplace for remark however didn’t obtain a response at the time of publication.
Although Trump signed an executive order on March 7 to create a federal “Strategic Bitcoin Reserve” and “Digital Asset Stockpile,” many authorized specialists have questioned the US president’s authority to enact particular insurance policies by EOs. Wyoming Senator Cynthia Lummis reintroduced laws on March 11 to codify the proposed BTC reserve into legislation within the Senate.
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