Texas Rep files bill Letting Cities invest up to $10 million in bitcoin
The measure would amend the Public Funds Investment Act and would only take effect on Sept 1 2027, without setting custody or audit rules.
Key takeaways
- 1Rep. Ron Reynolds filed House Bill 815 on Monday
- 2Bill caps municipal crypto investments at $10 million per city or county
- 3Authority would begin on 1 Sept 2027 if the bill becomes law
- 4Texas Comptroller bought $5 million of iShares Bitcoin Trust in Nov 2025
Texas Rep. Ron Reynolds filed House Bill 815 on Monday, allowing each Texas city and county to invest up to $10 million of public money in bitcoin or other cryptocurrencies. The measure would amend the Public Funds Investment Act and takes effect on Sept 1 2027 if enacted.
The bill adds Section 2256.0165 to Chapter 2256 of the Texas Government Code, authorising municipalities and counties to allocate no more than $10 million to crypto assets. The cap applies per local government, not as a statewide pool, and excludes school districts and other entities covered by the existing act. The legislation does not prescribe how the coins must be stored, audited or insured.
Definitions of “bitcoin” and “cryptocurrency” are borrowed from Senate Bill 21, which created the Texas Strategic Bitcoin Reserve in 2025. Unlike the reserve law, HB 815 omits the requirement that purchased coins have a market‑cap of at least $500 billion and does not include cold‑storage or qualified‑custodian provisions.
The Texas Comptroller’s office previously purchased $5 million of BlackRock’s iShares Bitcoin Trust in November 2025 as a placeholder before securing direct custody, later increasing exposure to roughly $10 million. Acting Comptroller Kelly Hancock has since formed an advisory committee and issued a request for proposals to select a custodian for the state’s bitcoin holdings.
If the bill passes both chambers and is signed, municipalities would still need to amend their investment policies to meet the “prudent person” standard before buying crypto. The proposal is currently unassigned to a committee; the regular legislative session begins on Jan 12 2027, and the authority would not become active until Sept 1 2027. Lawmakers and local officials are expected to debate the lack of custodial safeguards.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.