Texas Representative Ron Reynolds has filed a bill that would let cities and counties invest up to $10 million in cryptocurrencies.
The proposal would give local governments investment permission without applying the state’s $500 billion market value requirement.
House Bill 815 would amend the Public Funds Investment Act to let cities and counties invest public money in Bitcoin and other cryptocurrencies.
Reynolds, a Democrat representing Missouri City, filed the bill on November 9, 2026. He submitted the proposal ahead of the 90th Texas Legislature’s regular session.
Each city and county could invest up to $10 million under the proposal. However, the bill would not require local governments to buy cryptocurrencies or make minimum investments.
The proposed investment permission covers cities and counties but excludes school districts and other public bodies. The Texas Legislature has not referred HB 815 to a committee.
New Bill Leaves Out State Bitcoin Reserve Restrictions
HB 815 adopts cryptocurrency definitions from Senate Bill 21, the 2025 law that created the Texas Strategic Bitcoin Reserve. However, Reynolds’ proposal excludes several investment restrictions from that legislation.
Under SB 21, the state can purchase reserve assets with an average market capitalisation of at least $500 billion. The calculation covers the preceding 24 months.
HB 815 does not include the same market value requirement for local government investments. Cities and counties could therefore consider cryptocurrencies below that threshold, subject to other applicable investment laws.
The proposal also does not limit local investments to Bitcoin. Its definition covers virtual currencies that use cryptography and record transactions on a blockchain.
The two laws also differ on investment security. SB 21 allows the state comptroller to hire qualified custodians and use cold storage to protect reserve assets.
However, HB 815 does not require local governments to hire crypto custodians or conduct independent audits. Each city and county would need to establish its own security measures.
Texas has already invested in Bitcoin through BlackRock’s iShares Bitcoin Trust. The state bought $5 million worth of shares in November 2025 as part of its $10 million reserve initiative.
By May 2026, reports placed the state’s Bitcoin exposure through the fund at approximately $10 million. Texas also sought companies that could buy Bitcoin, protect it, and manage the state’s holdings.
The planned transition would allow Texas to hold Bitcoin directly through a custodian instead of relying on ETF exposure. However, HB 815 provides no similar instructions for local governments.
Texas: Reynolds Revisits Earlier Crypto Investment Proposal
Reynolds previously introduced House Bill 4258 in March 2025. The proposal sought permission for the comptroller to invest up to $250 million from the Economic Stabilisation Fund.
However, lawmakers did not pass HB 4258 during the 89th Legislature. The proposal combined state and local investment provisions, while HB 815 focuses exclusively on cities and counties.
The 90th Texas Legislature will convene on January 12, 2027. If lawmakers approve HB 815, the proposed investment permission will take effect on September 1, 2027.
