Texas cities and counties could soon gain the authority to invest public funds in Bitcoin and other cryptocurrencies. A new bill would allow each eligible local government to invest up to USD 10 million, although participation would remain optional.
State Representative Ron Reynolds, a Democrat from Missouri City filed House Bill 815 on November 9, ahead of the 2027 legislative session. The proposal seeks to amend the Public Funds Investment Act, which governs how public entities invest their money.
The official bill proposes adding Section 2256.0165 to the Texas Government Code. Under that provision, municipalities and counties could invest money they own or control in Bitcoin and other cryptocurrencies.
Each eligible government would have a separate investment limit of USD 10 million. However, the legislation would not require local authorities to purchase digital assets or set aside any specific amount for cryptocurrency investments.
School districts would remain outside the proposed authority. Cities and counties choosing to invest would also need to follow existing public investment rules, including requirements governing their investment policies.
The measure has not yet received a committee assignment. Texas lawmakers are scheduled to begin their next regular session on January 12, 2027. If approved, HB 815 would take effect on September 1, 2027.
HB 815 follows Texas' decision to establish a Strategic Bitcoin Reserve in June 2025. However, the new measure does not adopt all the investment restrictions included in that legislation.
The existing Senate Bill 21 requires cryptocurrencies purchased for the state reserve to maintain an average market capitalization of at least USD 500 billion over the preceding 24 months.
Reynolds' proposal uses the same legal definitions for Bitcoin and cryptocurrency but leaves out that market capitalization requirement. Consequently, the proposed local investment authority would not carry the state reserve's asset eligibility threshold.
The bill also contains no separate provisions covering cryptocurrency custody, independent audits or investment losses. It does not specify whether local governments should purchase digital assets directly or use investment products.
Meanwhile, the Texas Comptroller's office has pursued custody arrangements for the state reserve. In May 2026, officials announced plans to identify qualified providers capable of managing and safeguarding the state's cryptocurrency holdings.
Reynolds previously introduced a broader cryptocurrency investment measure during the 2025 legislative session. House Bill 4258 proposed allowing the state Comptroller to invest up to USD 250 million from Texas' Economic Stabilization Fund in Bitcoin or other cryptocurrencies.
That legislation also contained a provision allowing municipalities and counties to invest up to USD 10 million each. However, the proposal failed to secure legislative approval.
The latest bill removes the USD 250 million state investment provision and focuses exclusively on cities and counties. It also draws its cryptocurrency definitions from the state reserve law that lawmakers approved in 2025.
For now, HB 815 remains in the early legislative process. Lawmakers must consider the proposal during the upcoming session before local governments can receive the proposed investment authority.
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