Texas State Representative Proposes Bill Allowing Cities and Counties to Invest in Cryptocurrencies like Bitcoin

Key Points of This Article

• A bill to add cryptocurrencies as an investment option for public funds
• Capped at $10 million

Bill to Include Cryptocurrencies as Investment Options

On the 9th, Ron Reynolds, a Democratic state representative from Texas, introduced Bill HB815, which would allow cities and counties in the state to invest in cryptocurrencies under the "Public Funds Investment Act."

This bill is submitted in preparation for the 90th Texas Legislature, scheduled to convene on January 12, 2027. It pertains to the "Public Funds Investment Act," which specifies where public agencies in Texas can invest taxpayer funds.

By adding cryptocurrencies as an investment option, municipalities such as cities and counties in Texas would be able to invest up to $10 million (approximately 1.6 billion yen) of public funds into Bitcoin and other cryptocurrencies.

If passed by the legislature, the bill is expected to take effect on September 1, 2027. Note that the cap is per municipality and not a total for the entire state. It does not mandate investments.

The bill excludes school districts from its scope. Additionally, cities and counties that wish to utilize the new investment authority must revise their written investment policies to incorporate cryptocurrencies before actually moving funds.

It is important to note that school districts in Texas are a type of independent local government that operates public elementary and secondary schools, and do not necessarily align with city or county boundaries.

As a background, Representative Reynolds had previously submitted a similar bill, "HB4258," on March 10, 2025, in collaboration with Representative Mihaela Pressa. This bill allowed for the investment of up to $250 million from the state’s "Economic Stabilization Fund" into Bitcoin and other cryptocurrencies.

This bill was referred to the House Government Efficiency Committee in April 2025 but did not pass. The current bill has removed the provisions related to the "Economic Stabilization Fund."

State's "Strategic Bitcoin Reserve" Already Established

Texas, which has been proactive regarding cryptocurrencies, already passed the "Strategic Bitcoin Reserve Establishment Act" statewide last June. Based on this, the state purchased BlackRock's Bitcoin spot ETF in November of last year.

The definitions of "Bitcoin" and "cryptocurrencies" in this bill, which enables purchases at the city and county level, also reference the text of the Strategic Bitcoin Reserve Act (SB21). However, the requirements regarding a market capitalization of over $500 billion and qualified custodians found in SB21 are not included in this bill.

The text defines Bitcoin as "a decentralized cryptocurrency generated by a peer-to-peer (P2P) network that functions independently of central authorities or banks." Additionally, cryptocurrencies are defined as "virtual currencies that protect transactions recorded on decentralized ledgers like blockchain using cryptographic technology."

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.