Texas Proposes $250 Million Cap on State Bitcoin Investments Under HB 4258

• Texas bill HB 4258 limits state crypto investments to $250M from the Rainy Day Fund.
• Texas municipalities could invest up to $10M in Bitcoin and digital assets under HB 4258.
• HB 4258 follows Senate’s Bitcoin reserve approval, shaping Texas’ digital asset strategy.

Texas Representative Ron Reynolds introduced House Bill 4258 to the legislature on March 11, 2025, and his bill sought to establish caps on state cryptocurrency investments. According to the legislation, the state comptroller cannot invest more than $250 million from the Economic Stabilization Fund (also known as the Rainy Day Fund) in Bitcoin or other digital assets. 

The legislation imposes $10 million expenditure restrictions on both municipalities and counties regarding cryptocurrency investments . The state makes this strategic move when it seeks to establish cryptocurrencies as part of its financial framework. Texas legislators adopted this legislation because multiple U.S. states now shift their reserves to include digital currency assets. 

Supporters believe the bill provides an equilibrium between technological progress and security, yet opponents warn about cryptocurrency market fluctuations. The establishment of HB 4258 as law will enter into effect when Governor Greg Abbott provides his signature on September 1, 2025. The Texas Legislature’s official website proves the authenticity of legislative bill HB 4258.

Context of Texas’ Bitcoin Reserve Plans

Texas’ push for a Bitcoin reserve began gaining traction earlier this year. On March 6, the state Senate passed Senate Bill 21, allowing the comptroller to invest in Bitcoin without a specified limit. Introduced by Senator Charles Schwertner, SB 21 aims to establish a strategic reserve, positioning the state as a leader in digital asset adoption. Lieutenant Governor Dan Patrick flagged this as a 2025 priority in January, signaling strong state support.

HB 4258 builds on this framework but adds clear boundaries. Unlike SB 21, it sets firm caps, reflecting a cautious approach amid recent market turbulence. For instance, Bitcoin’s price dropped 3% from $89,000 to $81,000 after new U.S. tariffs hit markets on March 4, per Cointelegraph data. This volatility underscores the debate over using public funds for such investments.

National and State Trends in Crypto Legislation

The state isn’t alone in eyeing cryptocurrency reserves . Rhode Island’s Representative Stephen Casey recently proposed H6007 to allocate state funds to Bitcoin and precious metals. Bitcoin Reserve Monitor reports that 19 states have pending crypto reserve bills, while five have rejected similar plans. President Donald Trump’s March 7 executive order created a Crypto Strategic Reserve at the federal level, though experts question its legal scope.

These efforts highlight a shift toward modernizing fiscal strategies. Texas’ HB 4258, if passed, could influence other states by offering a model that caps investments to manage risk. However, the outcome remains uncertain as lawmakers weigh financial innovation against the unpredictability of digital markets. The Texas House will review SB 21 by May 24, potentially shaping the fate of both bills.