Texas Bill Allows Cities and Counties to Invest Up to $10 Million in Bitcoin

Texas Representative Ron Reynolds has submitted HB 815, a bill that allows each city and county in the state to invest up to $10 million of public funds in Bitcoin or other cryptocurrencies. The bill was introduced on the first day of the pre-filing period for the 90th Texas Legislature and amends the Public Funds Investment Act by adding Section 2256.0165, "Authorized Investments: Cryptocurrency." If enacted, this authorization will take effect on September 1, 2027. The $10 million is the investment limit for each city or county, and school districts and other local governments subject to the investment law are excluded from this provision. The bill continues the definition of Bitcoin and cryptocurrencies established in last year's SB 21, and cities or counties are not limited to Bitcoin. The bill does not introduce a requirement that the purchased tokens have an average market value of at least $500 billion over the past 24 months, nor does it include provisions for cold storage and qualified custodians, and it does not specify regulations for custody, digital asset audits, or loss handling. This bill is a narrowed version of last year's proposal; Reynolds had previously submitted HB 4258 on March 10, 2025, which allowed the state auditor to invest up to $250 million from the Economic Stabilization Fund in Bitcoin or cryptocurrencies, imposing the same $10 million limit on cities and counties, but it did not become law. The Texas State Auditor's Office purchased $5 million in BlackRock iShares Bitcoin Trust on November 20, 2025, with the second purchase bringing the reserve's IBIT exposure to approximately $10 million. The 90th Legislature will convene on January 12, 2027, and the bill has not yet been submitted to committee.