Texas Representative Files Bill Allowing Cities to Invest $10 Million in Bitcoin

A new legislative proposal in Texas could soon grant local governments the authority to integrate digital assets into their financial portfolios. As the state prepares for the 90th Texas Legislature, Texas Representatives are evaluating House Bill 815, which would allow cities and counties to invest as much as $10 million of public money into Bitcoin or other cryptocurrencies.

Filed on Monday by Representative Ron Reynolds, a Democrat from Missouri City, the bill seeks to amend the Public Funds Investment Act. If enacted, the legislation would establish a new section within the Texas Government Code specifically authorizing these digital asset investments. The proposed authority would take effect on September 1, 2027.

Understanding the Texas Representatives Proposal

The bill defines Bitcoin as a decentralized cryptocurrency operating independently of central authorities, while cryptocurrency is broadly categorized as virtual currency secured by cryptography on a distributed ledger. Unlike previous legislative efforts, such as the state's own strategic reserve, House Bill 815 does not mandate specific market capitalization requirements for the assets, nor does it establish strict protocols for cold storage or custodial services.

Under the current framework of the Public Funds Investment Act, local governments are already required to maintain a written investment policy that prioritizes the safety of principal and liquidity. Should this bill become law, cities and counties would be responsible for updating their internal investment policies to include cryptocurrency before making any purchases. The legislation does not currently outline specific requirements for audits or the handling of potential financial losses related to these assets.

This initiative follows a previous, broader attempt by Representative Reynolds and Representative Mihaela Plesa, which proposed allowing the state comptroller to invest $250 million from the Economic Stabilization Fund into Bitcoin. That earlier measure did not become law. House Bill 815 focuses exclusively on local government authority, excluding school districts and other entities covered by the investment act.

Texas cities and counties could invest up to $10 million in Bitcoin under newly proposed state legislation.

Why it matters

This bill represents a significant shift in how Texas municipalities might manage public funds, moving beyond traditional financial instruments. By providing a statutory pathway for local governments to hold Bitcoin, the measure could influence how regional authorities across the United States approach digital asset adoption.

While the bill is currently in the early stages of the legislative process and has yet to be referred to a committee, it highlights the growing intersection of public finance and cryptocurrency policy. For observers, including those in international markets, the evolution of Texas's approach to digital assets serves as a key indicator of how government entities may balance innovation with the fiduciary responsibilities inherent in managing public money.