Texas Proposes Second Bitcoin Reserve Bill with Investment Limits

Highlights:

• Texas plans to invest $250 million in Bitcoin and to allow local governments to invest up to $10 million.
• HB 4258 limits investment, while SB 778 allows tax payments in Bitcoin and stops selling for five years.
• Texas and Arizona are leading in Bitcoin reserve bills after Utah dropped its plan.

Lawmakers in Texas have introduced a second Bitcoin reserve proposal called House Bill 4258 (HB 4258). The bill proposes to invest $250 million from their economic stabilization fund in digital assets, including Bitcoin. House Bill 4258 appeared on March 11 after Senate Bill 778 received bipartisan backing in the Senate.

Texas introduces another Bitcoin reserve bill (HB 4258) to allow the Comptroller to invest not more than $250M in Bitcoin or other cryptocurrency and municipalities to invest not more than $10M of its funds in Bitcoin or other cryptocurrency. pic.twitter.com/fIVsPoOniv

— cryptothedoggy (@cryptothedoggy) March 11, 2025

HB 4258 grants the Texas Comptroller the authority to oversee investments while giving municipal areas and counties permission to invest up to $10 million in digital assets. The bill presents a systematic framework that will be used to invest in digital assets, which separates it from the previous draft. The legislation will become law on September 1, 2025, pending its approval by the Texas legislature.

Unlike SB 778, which does not specify investment limits, HB 4258 introduces a clear cap on how much the state and local governments can invest. The proposed law enables municipalities and counties to invest in cryptocurrency while imposing a $10 million cap per organization.

Comparing HB 4258 and SB 778: Key Differences

The state legislation SB 778 aims to merge Bitcoin with its financial system by authorizing payments and donations through cryptocurrencies. The legislation prohibits the state from selling its Bitcoin stash for at least five years. HB 4258 introduces different measures by establishing investment limits and welcoming local government participation. SB 778 focuses on Bitcoin adoption within government transactions, while HB 4258 establishes structured investment boundaries for state and local participation in digital assets.

The state has positioned itself during this period to expand its influence in developing the cryptocurrency market. Texas Lieutenant Governor Dan Patrick declared Bitcoin reserves as a fundamental financial measure that he strongly supports. Texas Blockchain Council President Lee Bratcher believes Bitcoin adoption makes sense due to the Texas Triangle. It joins several states across the country that are working to integrate Bitcoin into their financial planning strategies.

Texas is uniquely positioned for bitcoin adoption. The Texas Triangle—Houston (energy), Austin (tech), and Dallas (capital markets)—places bitcoin at the intersection of key industries.

As a result, efforts to establish a Strategic Bitcoin Reserve for the state are gaining… pic.twitter.com/qiTt1JGG1u

— Onramp (@OnrampBitcoin) March 10, 2025

The Broader Bitcoin Reserve Trend in the U.S.

Texas stands among 21 U.S. states that are actively pursuing digital asset reserve proposals through their legislative processes. Some states have already introduced active proposals, while others are still reviewing their feasibility.

Earlier this month, Utah lawmakers removed a Bitcoin reserve clause from a bill before a final vote, narrowing the race for the first state-backed Bitcoin reserve to Texas and Arizona. With Utah stepping back, Texas and Arizona remain the leading states in this legislative effort, both pushing forward with crypto-friendly bills.

Meanwhile, the Texas House is expected to decide on SB 778 by May 24. Some lawmakers believe the approval process could be expedited, bringing the bill to the governor’s desk sooner than anticipated. Across the country, other states like Kentucky, New Hampshire, Illinois, and Iowa also have Bitcoin reserve bills in progress, but they are further behind in the legislative process. Meanwhile, President Trump recently signed an executive order to establish a strategic Bitcoin reserve and a digital asset stockpile.