Crypto Regulation in Texas

Legal

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.

Region: North AmericaRisk Score: 30/100

Tax Information

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 Crypto
No
Staking Tax
No state-level income tax; federal taxes apply
Airdrop Tax
No state-level income tax; federal taxes apply
Mining Tax
No state income tax; franchise tax may apply to mining businesses above revenue threshold
Summary
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 & Registration

License Required
Yes
Regulator
Texas Department of Banking / TSSB (Texas Department of Banking / Texas State Securities Board)
Framework
Texas Finance Code; Texas Virtual Currency Act (HB 4474, 2023)
License Types
Money Services Business License (state-level, with crypto exemptions per DOB guidance), Securities Registration (if applicable)
Estimated Cost (USD)
$5,000 - $100,000
Timeline
2-6 months
Ease of Licensing
Medium
Notes
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.

AML / KYC

KYC Required
Yes
Travel Rule
Yes
FATF Member
Yes
FATF Status
Compliant
Suspicious Activity Reporting
Yes

Mining

Mining Legal
Yes
Status
Legal
Electricity Cost ($/kWh)
$0.06
Renewable Energy
20%
Climate
Hot
Infrastructure
Excellent
Tax on Mining Income
0.375%-0.75% franchise (margin) tax on total revenue over $2.47M threshold; no state corporate income tax
Notes
Competitive electricity prices. Mining operations are economically viable.

DeFi, Stablecoins & NFTs

DeFi: unclearStablecoins: no rules

Soken Services

Legal Opinion
Available | $3,000 - $12,000 | 10 days
Banking
Difficulty: Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
ACH, SWIFT, Fedwire
Card Payments
Visa, Mastercard
Company Registration
$8,000 | 30 days | Limited Liability Company (LLC)
Licensing Support
Available | $25,000 - $100,000

Sources

Texas Department of Banking
Reviewed: 2026-03-01verified

Frequently Asked Questions

Is crypto legal in Texas?
Cryptocurrency is currently classified as "Legal" in 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.
What is the crypto tax rate in Texas?
In Texas, the personal capital gains tax on crypto is 0% state income tax (federal capital gains tax still applies), and the corporate tax rate is 0.375%-0.75% franchise (margin) tax on total revenue over $2.47M threshold; no state corporate income tax. 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.
Do I need a crypto license in Texas?
Yes, a crypto license is required in Texas. The regulator is Texas Department of Banking / Texas State Securities Board under Texas Finance Code; Texas Virtual Currency Act (HB 4474, 2023). Estimated licensing cost: $5,000 - $100,000.
Is crypto mining legal in Texas?
Yes, crypto mining is legal in Texas. Electricity costs approximately $0.06/kWh. Mining income is taxed at: 0.375%-0.75% franchise (margin) tax on total revenue over $2.47M threshold; no state corporate income tax. Competitive electricity prices. Mining operations are economically viable.
What are the AML/KYC requirements for crypto in Texas?
Yes, crypto businesses in Texas must comply with KYC (Know Your Customer) requirements. The FATF Travel Rule is implemented. FATF compliance status: compliant.