Bitcoin Reserve: Texas to Cap BTC Amount, Utah Advances Bill, Senator Lummis Reboots Efforts

- A Texas legislator has tabled a bill proposing to cap any Texas-based strategic crypto reserve to a maximum of US$500 million.
- In Utah, the stateâs âBitcoin billâ has passed the senate, after all reference to a strategic crypto reserve was removed at the last minute.
- At the federal level Senator Cynthia Lummis has reintroduced her BITCOIN Act which if passed would see the US government purchase 1 million BTC over 5 years.
Thereâs been a flurry of activity over the past week around various US strategic crypto reserves, both at a state and federal level.
In Texas, Democrat Representative Ron Reynolds has introduced a bill, which if passed would limit the stateâs crypto reserve to a maximum of US$250 million (AU$397 million). In Utah, thereâs mixed news â the state did just pass its âBitcoin billâ, but crucially the clause allowing for the establishment of a strategic Bitcoin reserve was removed.
Meanwhile at a federal level Republican Senator Cynthia Lummis has reintroduced legislation proposing the US purchase 1 million BTC over five years. Lummisâs bill would codify and extend Trumpâs strategic Bitcoin reserve executive order that currently sees the US government simply holding its seized Bitcoin rather than actively acquiring additional Bitcoin. Lummis originally introduced the legislation last year before the election.
Related: Trump Signs US Crypto Reserve Order as Michael Saylor Says US May Buy 1 Million BTC
Attempt to Limit Size of Texasâ Bitcoin Reserve
Representative Reynoldsâ bill, which was introduced March 10, proposes that the Texas comptroller not be allowed to invest more than US$250 million of the stateâs Economic Stabilisation Fund into the strategic cryptocurrency reserve. It also suggests that Texas counties and cities be limited to US$10 million crypto reserves.
This bill follows the passage of legislation through the Texas senate on March 6, that allows the state to create a strategic Bitcoin reserve â that legislation doesnât specify any limit to the size of the reserve. The bill still requires the signature of the Texas governor to become law. If it clears that final hurdle, Texas will become the first US state to have a strategic crypto reserve.
Utah Bill Stripped of Reserve Clause
Meanwhile in Utah the passage of the stateâs âBitcoin billâ, technically known as HB230 âBlockchain and Digital Innovation Amendmentsâ, through the senate has been a mixed blessing. The bill codifies certain rights for the stateâs residents â such as digital asset custody rights, the freedom to mine crypto, run a node or stake crypto â but it does not include provisions for the state to establish a strategic crypto reserve.
The establishment of a strategic reserve had been the centrepiece of the bill right up until the last moment. As originally drafted, the bill wouldâve allowed Utahâs treasurer to invest in any cryptocurrency that had a market cap over US$500 billion for the past 5 financial years. Only Bitcoin meets this criteria, so effectively it wouldâve been a Bitcoin-only reserve.
Prior to the billâs third and final reading though, Utahâs House voted 19-7-3 in favour of an amendment to strip any reference to a strategic crypto reserve. Commenting on Utahâs legislatorsâ decision, one of the billâs sponsors, Senator Kirk A. Cullimore said:
There was a lot of concern with those provisions and the early adoption of these types of policies, all of that has been stripped out of the bill.

In total, 31 US states have introduced bills to establish strategic crypto reserves: of these, 25 could still potentially be passed into law.
Lummis Reintroduces Legislation to Buy A Million BTC
The legislation reintroduced by Senator Lummis, known as the BITCOIN Act, would take the federal strategic bitcoin reserve to a whole new level. Currently, the reserve established by President Trump through an executive order is simply holding Bitcoin seized through criminal investigations.
Lummisâ bill would see the US buy an additional one million BTC over five years to be paid for by âdiversifying existing fundsâ in the Federal Reserve system.
Itâs unclear whether such a bill has legs, given White House crypto czar David Sacksâ emphasis on how the existing reserve will ânot cost taxpayers a dimeâ and explicit statement that the government wonât be buying assets for the reserve:
The government will not acquire additional assets for the stockpile beyond those obtained through forfeiture proceedings.

However, the text of the executive order does allow for government purchasing of assets to add to the reserve, directing the Treasury and Commerce Departments to âdevelop budget-neutral strategies for acquiring additional bitcoin.â
Related: Michael Saylor Advocates for Massive US Bitcoin Buy: Proposes 25% Stake by 2035
In a statement shared with media outlets, Senator Lummis explained her view that Bitcoin is fundamental to America maintaining its global economic dominance through the 21st century:
By transforming the presidentâs visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy.
