Texas State Representative Ron Reynolds introduced a bill on Monday that would permit each city and county in Texas to invest up to $10 million of public funds in bitcoin or other cryptocurrencies. The proposal arrives as part of the prefiling process for the 90th Texas Legislature, and specifically aims to amend the Public Funds Investment Act to create a new framework allowing local governments broader access to digital assets.
Details of House Bill 815
House Bill 815, filed by Representative Reynolds, seeks to amend Chapter 2256 of the Texas Government Code with a newly designated Section 2256.0165, titled “Authorized Investments: Cryptocurrency.” This section would grant municipalities and counties the authority to invest not more than $10 million each, rather than pooling funds statewide, in bitcoin or other digital currencies. School districts and certain other local government entities are not included in the scope of the bill.
If House Bill 815 becomes law, the provisions would take effect on September 1, 2027. The bill defines bitcoin as a decentralized cryptocurrency managed by a peer-to-peer network, while “cryptocurrency” refers more broadly to any virtual currency secured through cryptography and recorded on a distributed ledger. These definitions mirror those established in prior state legislation.
Under proposed Section 2256.0165, a city or county would have independent authority to invest up to $10 million in bitcoin or another cryptocurrency, with definitions adopted from prior state legislation to clarify the scope of permitted assets.
Unlike the Texas Strategic Bitcoin Reserve requirements, cities and counties would not be limited to cryptocurrencies with a minimum market capitalization, nor would the bill specify conditions for custody or security measures. The measure omits previous stipulations on such issues, leaving risk management to local policies.
Custody and oversight provisions
The Public Funds Investment Act already mandates that local governments maintain a written investment policy emphasizing safety and liquidity, and requires investment practices consistent with the standards of a prudent person. Local governments opting to invest in digital assets would need to formally update their investment policies to include cryptocurrency prior to any purchase.
However, House Bill 815 does not address custody arrangements, digital asset audits, or the procedures for managing losses related to cryptocurrency investments. There are also no requirements for working with qualified custodians or the implementation of specialized security protocols.
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Legislative background and previous attempts
This bill represents a narrower approach compared to a broader measure previously proposed by Reynolds and Representative Mihaela Plesa in March 2025. That earlier bill would have allowed the state comptroller to invest up to $250 million from the Economic Stabilization Fund, alongside the $10 million cap for cities and counties. The broader measure did not advance out of committee.
Instead, Senate Bill 21 established the Texas Strategic Bitcoin Reserve, separate from city and county authorities. Texas Comptroller’s office subsequently purchased $5 million of the iShares Bitcoin Trust in November 2025 as a preliminary step while developing direct custody solutions, with total exposure later reaching approximately $10 million.
Acting Comptroller Kelly Hancock formed a strategic advisory committee and issued a request for proposals to secure a custodian, signaling the state’s intention to directly manage its bitcoin holdings in the future.
Next steps in the legislative process
The legislative process for House Bill 815 has begun with its formal filing, coinciding with the opening of prefiling for the 90th Texas Legislature. The regular session is scheduled to convene on January 12, 2027, and subsequent committee assignment will occur after lawmakers officially begin work.
If the bill advances through both chambers of the legislature and receives the governor’s signature, cities and counties across Texas will gain the legal authority to allocate public funds toward cryptocurrency investments starting September 1, 2027.
