Key Points
- Texas state lawmakers have presented a second Bitcoin reserve bill, HB 4258, allowing up to $250 million investment in cryptocurrencies.
- The bill also permits municipalities and counties to invest in cryptocurrencies, with a cap of $10 million.
Texas lawmakers have proposed a second Bitcoin reserve legislation, HB 4258. This new bill allows the state’s Comptroller, who is the chief financial officer, to invest a maximum of $250 million from the state’s economic stabilization fund balance in Bitcoin or other digital currencies.
Details of the Bill
In addition to the above, this bill also grants municipalities or counties the authority to invest in Bitcoin or other cryptocurrencies. However, it restricts the investment amount to $10 million of their funds.
The first Bitcoin reserve bill, SB 778, did not specify a limit on the amount that could be invested in cryptocurrencies. It did, however, mention that the state would begin accepting taxes and donations in the form of cryptocurrency. It was also mentioned that Texas would impose a minimum five-year ban on selling state-owned Bitcoins.
Approval Process and Other States
Earlier this month, the state Senate approved a proposal to invest public funds in Bitcoin with a 25-2 vote. The Texas House will now review the bill and is expected to announce their decision by May 24. Dennis Porter, the founder of Satoshi Act Fund, has suggested that the House members might speed up the process.
According to the Bitcoin Reserve Monitor, 21 U.S. states are currently contemplating cryptocurrency strategic reserves. The legislative approval process is at different stages in each state, with 19 state legislations still pending, two still considering proposals, and five having been rejected.
