Texas Moves Forward with Second Crypto Reserve Bill, Eyes $250M Bitcoin Allocation
Texas has doubled down on its Bitcoin strategy with a second crypto reserve bill, further solidifying its position as a key player in digital asset adoption. The newly proposed legislation, HB 4258, aims to allocate up to $250 million from the state’s economic stabilization fund into Bitcoin and other cryptocurrencies, according to a document released on March 11.
This marks Texas’ second major attempt at integrating Bitcoin into its financial infrastructure, following SB 778, which recently secured bipartisan approval in the Senate. However, HB 4258 introduces key differences, including a strict investment cap and expanded participation for municipalities and counties, allowing local governments to invest up to $10 million in digital assets. If passed, the bill would take effect on September 1, 2025.
Texas Strengthens Its Crypto Position
The state’s latest push aligns with a growing trend across the U.S., where 21 states are exploring similar digital asset frameworks at varying legislative stages. While some states have active proposals, others are still conducting feasibility studies.
Lee Bratcher, president of the Texas Blockchain Council, emphasized the state’s unique advantage in Bitcoin adoption, citing the Texas Triangle—Houston (energy), Austin (tech), and Dallas (capital markets)—as a powerful hub for cryptocurrency integration.
The Road to a Bitcoin Reserve
Texas’ first crypto bill, SB 778, focuses on integrating Bitcoin into the state’s financial system by enabling tax payments and donations in digital assets. It also proposes a five-year restriction on selling state-owned Bitcoin, reinforcing the state’s long-term commitment to holding digital assets. With Senate approval already secured, a House decision is expected by May 24.
Support for Texas’ Bitcoin initiatives continues to grow, with Lieutenant Governor Dan Patrick championing the state’s leadership in crypto adoption. Patrick underscored Bitcoin’s decentralized nature and its potential as a hedge against economic volatility. He also pointed to former President Donald Trump’s pro-crypto stance, stating:
“President Trump has made it clear that he wants the U.S. to be the global leader in cryptocurrency. His vision for Bitcoin and digital assets has fueled American innovation, and Texas is at the forefront of this movement.”
With two major crypto reserve bills in play, Texas is positioning itself as a leader in state-backed Bitcoin adoption, potentially setting a precedent for others to follow.