A new bill introduced in Texas by Representative Ron Reynolds aims to restrict how much local and state authorities can invest in cryptocurrencies.

Filed on 10 March, the legislation proposes that the state's comptroller be prohibited from investin more than$250 million of the Economic Stabilisation Fund, also known as the 'rainy day' fund, in Bitcoin or other digital currencies.

Additionally, the bill seeks to cap investments by municipalities and counties at$10 million.

The proposal follows the Texas Senate's passing of a bill on 6 March to establish a strategic Bitcoin reserve, which could allow the state's comptroller to invest an unlimited amount in Bitcoin.

The push for a state Bitcoin reserve aligns with wider efforts in US state legislatures, particularly following the 2024 political shifts under President Trump's administration.

While the bill proposed by Reynolds is not directly tied to the Bitcoin reserve bill introduced by Republican State Senator Charles Schwertner, its introduction adds a layer of debate over cryptocurrency regulations at both state and federal levels. If the bill passes, it could be enacted on 1 September.

Despite recent federal actions, including an executive order from Trump to establish a 'Strategic Bitcoin Reserve,' questions about the president's authority to implement such policies through executive orders remain.

Meanwhile, Wyoming Senator Cynthia Lummis has reintroduced legislation to codify the federal Bitcoin reserve proposal into law.

.