Texas

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.

Overview

StatusLegal
Risk Score30/100 (Moderate Risk)
Regionnorth america
CurrencyUSD

Tax

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 $2.47M threshold; no state corporate income tax
VAT on CryptoNo
Staking TaxNo state-level income tax; federal taxes apply
Airdrop TaxNo 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.

Licensing

RequiredYes
RegulatorTexas Department of Banking / TSSB
FrameworkTexas Finance Code; Texas Virtual Currency Act (HB 4474, 2023)
Easemedium
Cost$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.

DeFi

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.

Stablecoins

Status: no_rules

No Texas-specific stablecoin rules. Federal-level regulation and guidance apply.

NFTs

Status: no_rules

No specific NFT regulation

Mining

LegalYes
Electricity$0.06/kWh
Renewable20%
Infrastructureexcellent

Texas has abundant energy infrastructure with relatively low electricity costs and a growing renewable energy sector. The temperate climate aids cooling for mining operations.

Geopolitics

Stabilitystable
SanctionsNo
Corruption Index67/100
Banking Accessopen

Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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