Texas bill would allow $10M in local Bitcoin investments - Crypto News
Texas Rep. Ron Reynolds has filed House Bill 815, permitting cities and counties to invest up to $10 million in Bitcoin or other cryptocurrencies without the state's market-cap restrictions.
The bill, filed on November 9, 2026, would amend the Public Funds Investment Act to include cryptocurrency investments for municipalities and counties. Each eligible government could invest up to $10 million, with the option to participate but no requirement to do so. The legislation specifically excludes school districts and other public bodies from this new authority.
Separate caps for each local government
Unlike the state's Bitcoin reserve, HB 815 does not create a single $10 million pool shared across Texas. Instead, each city and county would have its own independent investment limit. The bill covers money belonging to or under the control of these governments, with no minimum investment requirement and no state funding allocated for these acquisitions.
No market-cap filter from state reserve
HB 815 borrows cryptocurrency definitions from Texas' existing reserve law but omits the $500 billion market capitalization requirement that applies to state investments. The bill defines Bitcoin as a decentralized cryptocurrency operating through a peer-to-peer network and cryptocurrency more broadly as virtual currencies secured by cryptography with transactions recorded on distributed ledgers like blockchain.
Previous proposal included state investment
Reynolds previously introduced HB 4258 in March 2025, which proposed allowing the comptroller to invest up to $250 million from the Economic Stabilization Fund in cryptocurrency alongside the local government provisions. That bill had a September 1, 2025 effective date and included its own crypto definitions rather than referencing the subsequently enacted state reserve legislation.
Texas has pursued custody arrangements
The state's Bitcoin reserve has been operational since November 2025, initially purchasing $5 million in BlackRock ETF shares. By May 2026, the reserve held approximately $10 million in Bitcoin through BlackRock's iShares Bitcoin Trust. Texas has sought custody services capable of transitioning from ETF exposure to directly custodied Bitcoin within 60 days of contract execution, with requirements for public reporting of holdings.
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