The bill, H.B. No. 4258, seeks to authorize the comptroller of public accounts and certain political subdivisions in Texas to invest in cryptocurrencies, specifically Bitcoin and other similar digital currencies. It introduces new definitions for "Bitcoin" and "cryptocurrency" in Section 404.001 of the Government Code, clarifying that Bitcoin is a decentralized cryptocurrency created by a peer-to-peer network, while cryptocurrency is defined as a virtual currency secured by cryptography and recorded on a distributed ledger like blockchain.

Additionally, the bill allows the comptroller to invest up to $250 million of the economic stabilization fund in Bitcoin or other cryptocurrencies, as stated in the newly added Subsection (a-1) of Section 404.0241. It also permits municipalities and counties to invest up to $10 million of their funds in cryptocurrencies under the new Section 2256.0165. The provisions of this act are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 404.001, Government Code 404.0241 (Government Code 404)