---
type: subdivision
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "north_america", "fatf", "legal"]
aliases: ["US-TX", "USA-TX"]
created: 2026-04-13
updated: 2025-10-01
compile_into: ["[[country--united-states]]"]
sources:
  - name: "Texas Department of Banking"
    url: "https://www.dob.texas.gov"
    type: "official"
---

#  Texas (US-TX) — Crypto Regulation

> 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

| Field | Value |
|-------|-------|
| Status | Legal |
| Sub-jurisdiction of | [[country--united-states|United States]] |
| Risk Score | 30/100 (Moderate Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--north-america|north america]] |
| Currency | [[entity--usd|USD]] |

## Tax

| Type | Rate |
|------|------|
| 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 |
| Mining Tax | No state income tax; franchise tax may apply to mining businesses above revenue threshold |
| 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.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--texas-department-of-banking|Texas Department of Banking]] / TSSB |
| Framework | Texas Finance Code; Texas Virtual Currency Act (HB 4474, 2023) |
| Ease | medium |
| Cost | $5,000 - $100,000 |
| Timeline | 2-6 months |

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

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | fsrb_only |

## 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

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 20% |
| Climate | temperate |
| 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.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 67/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

Enforcement focused on unlicensed operators and consumer protection

## CBDC Status: exploring

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [Texas Department of Banking](https://www.dob.texas.gov)