A member of the Texas legislature has proposed a invoice that would restrict the quantity native and state authorities spend money on 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 take a position greater than $250 million of its Financial Stabilization Fund — in any other case referred to as a “wet day” fund — in Bitcoin (BTC) or different cryptocurrencies. The laws additionally recommended 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 laws on March 6 to determine a strategic Bitcoin reserve within the state. The SB 21 invoice seemingly might enable the Texas comptroller to don’t have any restrict on buying BTC for a reserve, based mostly on the newest draft.
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The plan for a strategic Bitcoin reserve in Texas was one among many separate payments proposed in US state governments following the inauguration of President Donald Trump and Republican lawmakers profitable management of the US Home of Representatives and Senate. Texas Lieutenant Governor Dan Patrick stated in January that the state’s legislative priorities for 2025 would come with a proposal to determine a Texas Bitcoin Reserve.
It’s unclear if Rep. Reynolds, a Democrat, supposed to help 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 on the time of publication. Although Trump signed an govt order on March 7 to create a federal “Strategic Bitcoin Reserve” and “Digital Asset Stockpile,” many authorized consultants have questioned the US president’s authority to enact particular insurance policies via EOs. Wyoming Senator Cynthia Lummis reintroduced laws on March 11 to codify the proposed BTC reserve into legislation within the Senate. Journal: Elon Musk’s plan to run authorities on blockchain faces uphill battleIs there a partisan divide on state and federal crypto plans?