Key Takeaways
- Texas introduced HB 4258 to establish a $250 million Bitcoin reserve.
- The bill allows municipalities and counties to invest up to $10 million.
- SB 778, Texas' first Bitcoin bill, awaits a House decision by May 24.
Texas lawmakers have unveiled HB 4258, a new bill seeking to allocate up to $250 million from the state’s economic stabilization fund into Bitcoin and other digital assets.
The legislation, introduced on March 11, follows the earlier SB 778, which recently gained bipartisan support in the Senate.
Investment cap & participation
Unlike SB 778, HB 4258 places a cap on investments and allows municipalities and counties to participate, with each jurisdiction permitted to allocate up to $10 million into digital assets.
If passed, the law would take effect on September 1, 2025.
National trends in Bitcoin legislation
Texas’ push for a Bitcoin reserve aligns with broader national trends, with 21 states currently exploring similar legislation.
Some have active proposals, while others are still in the research phase.
Strategic advantage in Bitcoin adoption
Lee Bratcher, president of the Texas Blockchain Council, emphasized Texas’ strategic advantage in Bitcoin adoption, citing the economic strength of the “Texas Triangle”—Houston (energy), Austin (tech), and Dallas (capital markets).
Integration of Bitcoin into financial system
The state’s first Bitcoin bill, SB 778, aims to integrate Bitcoin into Texas’ financial system by allowing tax payments and donations in digital assets.
It also includes a five-year restriction on selling state-owned Bitcoin. The bill awaits a Texas House decision by May 24.
Support from state leadership
Texas Lieutenant Governor Dan Patrick voiced strong support, calling Bitcoin a valuable asset for the state’s financial future, stating:
President Trump’s leadership on Bitcoin has paved the way for rapid American innovation, and Texas is leading the way.
