A Texas lawmaker introduced legislation on Monday that would permit every county and municipality in the state to allocate up to $10 million of public funds into Bitcoin or alternative cryptocurrencies, omitting specific mandates regarding how those digital assets must be stored.
Authored by Democratic Representative Ron Reynolds of Missouri City, House Bill 815 was submitted on the opening day of prefiling for the 90th Texas Legislature under the title “Relating to the authority of a municipality or county to invest money in cryptocurrencies.” The published text on the Texas Legislature’s website consists of two sections.
The proposed legislation amends Chapter 2256 of the Texas Government Code, known as the Public Funds Investment Act, by introducing Section 2256.0165, designated as “Authorized Investments: Cryptocurrency.” This section establishes that “a municipality or county may invest not more than $10 million of its money or money under its control in Bitcoin or another cryptocurrency.” Should the bill pass, this authority would become effective on September 1, 2027.
The $10 million cap applies individually to each city or county rather than forming a collective statewide fund. Other local government entities governed by the investment act, such as school districts, are excluded from the provision.
What the bill does and does not say
The measure incorporates its definitions of “cryptocurrency” and “Bitcoin” from Section 403.701 of the Government Code, established last year via Senate Bill 21 to create the Texas Strategic Bitcoin Reserve. Bitcoin is characterized as a decentralized cryptocurrency sustained by a peer-to-peer network operating outside any central bank or authority. Cryptocurrency is defined more expansively as a virtual currency leveraging cryptography to secure transactions maintained on a distributed ledger like a blockchain.
Consequently, municipalities and counties would not be restricted exclusively to Bitcoin. Furthermore, the bill excludes the state reserve law’s stipulations that mandate acquired coins maintain an average market capitalization of at least $500 billion over a preceding 24-month duration, alongside its protocols governing cold storage and qualified custodians.
Existing guidelines under the Public Funds Investment Act already mandate that local governments establish a formalized investment policy centered on principal safety and liquidity, requiring investments to adhere to the prudence standards of a person managing their own financial affairs. Before making any purchases, a city or county would still need to incorporate cryptocurrency into this policy. The new legislative section itself offers no directives regarding custody, specialized audits for digital assets, or the management of potential financial losses.
A narrower version of last year’s proposal
On March 10, 2025, Reynolds, alongside Representative Mihaela Plesa, introduced House Bill 4258, a more expansive precursor. That measure would have granted the comptroller authorization to invest up to $250 million from the state’s Economic Stabilization Fund (the rainy day fund) into Bitcoin or alternative cryptocurrencies, while maintaining the same $10 million limit for local governments. That text was directed to the House Delivery of Government Efficiency Committee on April 1, 2025, ultimately failing to enact.
House Belief 815 omits the provisions concerning the rainy day fund, preserving exclusively the local-government framework. Meanwhile, the state’s independent reserve was established through Senate Bill 21, which Governor Greg Abbott signed into law in June 2025.
As reported by The Texas Tribune and verified by the agency, the Texas Comptroller’s office later acquired $5 million worth of BlackRock’s iShares Bitcoin Trust on November 20, 2025, serving as a temporary holding while developing direct custody systems. A subsequent acquisition elevated the reserve’s total exposure to IBIT to approximately $10 million. By May, Acting Comptroller Kelly Hancock appointed an advisory committee and issued a request for proposals seeking a custodian to advance toward direct Bitcoin holdings.
What comes next
Prefiling for the 90th Texas Legislature commenced on Monday, with the regular legislative session scheduled to begin on January 12, 2027. Although filed, the bill has not yet been assigned to a committee, a procedure typically deferred until lawmakers assemble. Even upon legislative approval and the governor’s signature, local governments would remain ineligible to exercise this investment power until September 1, 2027.
FAQ
What does House Bill 815 propose for Texas cities and counties?
The bill allows each municipality and county in Texas to invest up to $10 million of public funds in Bitcoin or other cryptocurrencies starting September 1, 2027, if passed.
Are school districts included in the proposed cryptocurrency investment bill?
No, school districts and other local government entities outside of cities and counties are excluded from the investment provisions.
Does the bill require specific custody rules for the digital assets?
No, the new section of the bill does not set rules for how the coins must be held, though local governments must still update their written investment policies to include cryptocurrency.
Who filed House Bill 815?
The bill was filed by Democratic Representative Ron Reynolds of Missouri City on the first day of prefiling for the 90th Texas Legislature.
