Texas municipal and county governments may soon be allowed to allocate public funds into crypto assets. Through the draft of House Bill 815 (HB 815), filed on Nov. 9, 2026, ahead of the 90th Texas Legislative regular session, Democratic Texas Representative Ron Reynolds proposed permitting local treasuries to invest in digital assets. The bill amends the Public Funds Investment Act by inserting a new section that allows local funds to be allocated to Bitcoin and other cryptocurrencies.
The investment cap is set at up to $10 million per locality, but the technical details behind the figure introduce fundamental shifts compared to state-level regulations.
Independent Cap Without State Budget Burden
The $10 million cap proposed by Reynolds applies independently to each eligible municipality and county, rather than serving as an aggregate ceiling across Texas. The investment scheme is entirely voluntary. The draft legislation does not mandate local governments to purchase crypto, sets no minimum purchase requirements, and provides no state budget appropriations to finance such transactions.
The investment authorization is also restricted to specific entities. HB 815 covers only cities and counties, excluding school districts and other public bodies. Regarding instrument definitions, the draft legislation references Government Code Section 403.701 enacted under Senate Bill 21 in 2025. That statute defines Bitcoin as a decentralized, peer-to-peer crypto asset independent of central banks, alongside general crypto assets secured by cryptography on a distributed ledger.
Not Just Bitcoin in the Mix
The most striking change in HB 815 lies in the absence of a valuation threshold. Texas’ previous state-level Bitcoin reserve framework mandated a minimum average market capitalization of $500 billion over a 24-month period. HB 815 scraps that requirement. With no minimum market cap threshold and no approved official token list, cities and counties would have legal ground to purchase crypto assets beyond Bitcoin.
Another difference appears in custody governance. The state reserve framework required qualified custodians with cold storage and regular independent audits. In contrast, the text of HB 815 contains no specific provisions regarding audits or custody for local crypto holdings.
The Path to September 2027
Reynolds previously introduced a similar initiative in March 2025 through HB 4258. That earlier draft pursued an even larger target: a $250 million state reserve allocation from the Economic Stabilization Fund alongside the $10 million cap for local governments. In his latest proposal, the Missouri City lawmaker dropped the state fund allocation to focus the bill strictly on local treasuries.
If enacted during the legislative process, the bill lists an effective date of Sept. 1, 2027. For Texas local treasury managers, the legislation offers a new, unforced avenue for capital allocation: opening the door to investments of up to $10 million, while leaving token selection and security decisions entirely to individual local governments.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
