Texas has adopted a generally permissive approach to crypto, particularly Bitcoin mining, leveraging its abundant and affordable energy. The Texas Department of Banking has issued guidance confirming that virtual currency is not money under the Texas Money Services Act, reducing licensing burdens.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | north america |
| Currency | USD |
| Capital Gains (Personal) | 0% state income tax (federal capital gains tax still applies) |
| Capital Gains (Corporate) | 0.375%-0.75% franchise (margin) tax on total revenue over $2.65M no-tax-due threshold (2026 report year); no state corporate income tax |
| VAT on Crypto | No |
| Staking Tax | No state-level income tax; federal taxes apply |
| Airdrop Tax | No state-level income tax; federal taxes apply |
Texas has no state income tax. The franchise (margin) tax applies to businesses with total revenue exceeding $2.47 million. This makes Texas attractive for crypto businesses, though federal tax obligations remain.
| Required | Yes |
| Regulator | Texas Department of Banking (TDB) / Texas State Securities Board (TSSB) / Texas Department of Licensing and Regulation (TDLR) |
| Framework | Texas Finance Code; Texas Money Services Modernization Act (MSMA, SB 895, effective Sep 1, 2023); Texas Uniform Commercial Code (HB 4474, 2021 — UCC amendment for virtual currency); Strategic Bitcoin Reserve Act (SB 21, signed Jun 20, 2025); ERCOT Mining Registration Rules (PUCT, Nov 2024) |
| Ease | medium |
| Cost (USD) | $5,000 - $100,000 |
The Texas Department of Banking clarified in 2019 that virtual currencies are not considered 'money' under state money transmitter law, reducing licensing requirements for many crypto businesses. Texas is the leading US state for Bitcoin mining due to its deregulated energy market and abundant renewable energy. The Virtual Currency Act (2023) established a commercial law framework for digital assets.
Enforcement focused on unlicensed operators and consumer protection
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | member_in_good_standing |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: Unclear
Texas has not issued DeFi-specific regulation. The state's generally permissive approach to crypto suggests DeFi is tolerated but not explicitly regulated at the state level.
Status: regulated
Texas has stablecoin-specific rules. Under the Money Services Modernization Act (MSMA, effective Sep 1, 2023) and DOB Supervisory Memorandum 1037 (revised Jan 28, 2025), stablecoins that (1) are pegged to a sovereign currency, (2) are fully backed by reserve assets, and (3) grant holders redemption rights are classified as 'money' subject to Texas money transmission licensing. At the federal level, the GENIUS Act (signed July 18, 2025) created the first federal stablecoin framework requiring 100% reserve backing, monthly public disclosure, and BSA/AML compliance for payment stablecoin issuers.
Status: no_rules
No specific NFT regulation
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 20% |
| Infrastructure | excellent |
Texas has abundant energy infrastructure with relatively low electricity costs and a growing renewable energy sector. The temperate climate aids cooling for mining operations.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 67/100 |
| Banking Access | open |
Risk Factors
Texas is part of the US — no OFAC/EU/UN sanctions. Highly stable democracy. Strong banking and internet. Texas is aggressively pro-crypto at the state level (SB 21 signed June 2025 establishing Bitcoin reserve). Energy market risk increased due to rapid crypto mining expansion. Federal policy uncertainty remains a risk factor across all US states.
Texas has adopted a generally permissive approach to crypto, particularly Bitcoin mining, leveraging its abundant and affordable energy. The Texas Department of Banking has issued guidance confirming that virtual currency is not money under the Texas Money Services Act, reducing licensing burdens.
Texas is classified by FATF as: member_in_good_standing.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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