A bill in Texas will allow cities and counties to invest up to $10 million in cryptocurrencies
Texas Representative Ron Reynolds has submitted a bill that would allow each city and county to invest up to $10 million in Bitcoin or other cryptocurrencies, without imposing the market capitalization limits used by the state's Bitcoin reserve fund.
- According to HB, the investment limit for each town, city, or county is 10 million US dollars.
- The proposed permissions do not apply to school districts, and the bill is scheduled to take effect on September 1, 2027.
- The bill adopts the definition of cryptocurrency from Texas' Reserve Act, but it does not set the $500 billion qualification threshold.
- Reynolds previously proposed a state-level investment plan of $2.5 billion, while retaining the same local government authorization.
The submitted text published on the online website of the Texas legislative body shows that House Bill No. 815 will amend the Public Funds Investment Act by adding a provision authorizing investments in cryptocurrencies. Reynolds is a Democratic representative from Missouri City who submitted this bill on November 9th, prior to the regular session of the 90th state legislature.
Official submission records show that Reynolds is the proposer, and there are no records of the proposal being forwarded by any committee. This proposal has not yet become law, and its effective date in September 2027 also depends on whether the bill can be passed.
The Texas Bitcoin bill sets a separate cap for each local government
The proposed terms apply to funds that belong to municipalities or counties, as well as funds controlled by them. Each eligible government may invest within the prescribed limits; the bill does not establish a pool of funds of one million dollars for use by the entire state of Texas.
Investment is completely voluntary. HB There is no requirement to purchase from a specific city or county, nor is there a minimum investment amount, and no state funds are allocated to provide funding for local purchases.
The legislation explicitly names towns, cities, and counties. School districts and other public institutions are not within the scope of the new investment authorization, although the scope of public entities covered by the Public Funds Investment Act extends beyond city and county governments.
This bill, which consists of two parts, specifies the investment authorization and the effective date separately. It does not establish a separate municipal reserve fund, nor does it designate any specific cryptocurrencies for the local investment portfolio.
The screening criteria for the $500 billion in state-level reserves were not included.
In terms of definition, HB 815 refers to Article 403.701 of the Government Code, which was established by Senate Act No. 21 of 2025. This act defines Bitcoin as a decentralized cryptocurrency that operates through a peer-to-peer network and does not rely on central institutions or banks.
Cryptocurrencies are more broadly defined as a type of virtual currency protected by cryptography, with their transaction records kept on distributed ledgers such as blockchain.
The effective Reserves Act sets separate conditions for state reserves purchases: the average market value of a certain asset over the past 24 months must be at least $500 billion. HB cites these definitions but does not mention this qualification requirement.
Therefore, the investments authorized by this bill are not limited to Bitcoin, nor are they restricted to assets that meet the state reserve requirements. There is no alternative minimum market value specified in the text, nor is there a list of approved tokens.
Under the state reserve framework, the state auditor general may contract with qualified custodians to use security technologies including cold storage, and may also commission independent audits. HB 815 does not have corresponding provisions for encrypted custody or auditing.
Reynolds previously sought to allocate $2.5 billion from Yutian Fund
In March 2025, Reynolds proposed HB 4258, suggesting that state auditors be allowed to invest up to $2.5 billion from the economic stabilization fund in Bitcoin or other cryptocurrencies.
According to previous reports by crypto.news, earlier investment proposals also included the same authorization of $10 million for towns and counties. The submitted version used its own definition of encryption and suggested that it come into effect on September 1, 2025.
The proposal for 2025 defines Bitcoin as an asset that operates through a decentralized network and describes cryptocurrencies as currencies supported by cryptography and distributed ledgers. It specifies state-level investment authority and local investment authority in separate clauses, with corresponding caps of $2.5 billion and $10 million applicable to different public institutions, respectively.
HB 815 removed provisions related to the Economic Stability Fund. Its definition was then referred to subsequent state reserve legislation that came into effect, while maintaining local investment caps.
Dezhou has made arrangements for its own hosting promotion reserves.
The Texas state-level reserves followed a different operational process. According to reports at the time, in November 2025, the state government purchased BlackRock ETF shares worth 5 million US dollars as a temporary allocation within its 10 million US dollar reserve plan.
As of May 29, 2026, according to relevant reports, the reserve holds a Bitcoin exposure of approximately 10 million US dollars through BlackRock iShares Bitcoin Trust. A tender was conducted for hosting services, with the aim of finding an institution that can purchase, hold, manage, and report qualified assets for the state government.
The procurement requirements include key management, operational controls, and secure storage in the name of the state government. It stipulates that within 60 days after the contract is executed, there must be a transition from ETF to directly managed Bitcoin, and the winning bidder is required to establish a public website to display the reserve holdings and value.
