Texas Passes Landmark Cryptocurrency Legislation

New laws recognize virtual currency, regulate crypto firms, and grant rights to investors

Apr. 10, 2026 at 6:11am

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A close-up, photorealistic image of a polished, metallic cryptocurrency token floating on a clean, monochromatic background, symbolizing the abstract concepts of digital finance and blockchain technology.A new era of digital currency regulation in Texas aims to foster innovation while protecting investors.Abbott Today

Texas has enacted a series of groundbreaking laws that establish the legal status of cryptocurrency, subject virtual currency firms to existing commercial regulations, and grant specific rights to cryptocurrency investors. The Texas Virtual Currency Act (TVCA) defines virtual currency, requires crypto companies to comply with state business laws, and outlines legal protections for token holders. Additionally, the Texas Department of Banking has issued guidance allowing state-chartered banks to provide cryptocurrency custody services to the public.

Why it matters

These new laws provide much-needed clarity and legitimacy for the cryptocurrency industry in Texas, one of the nation's leading technology and business hubs. By recognizing virtual currencies, regulating crypto firms, and protecting investors, Texas is positioning itself as a friendly environment for digital asset innovation while also safeguarding consumers.

The details

The TVCA defines virtual currency as 'a digital representation of value that is used as a medium of exchange, unit of account, or store of value' and not legal tender. The law requires crypto companies offering ICOs to comply with the Texas Securities Act, subjecting them to the same regulations as traditional securities offerings. The TVCA also grants specific legal rights to cryptocurrency holders, including the ability for multiple investors to have property rights in a single virtual currency.

  • The TVCA was signed into law by Governor Abbott on June 10, 2019 and took effect on September 1, 2021.
  • In April 2019, the Texas Department of Banking issued Memorandum 1037 defining virtual currencies and clarifying that they are not considered 'currency' under state law.
  • On June 10, 2021, the Texas Department of Banking published Industry Notice 2021-03 authorizing state-chartered banks to provide cryptocurrency custody services.

The players

Texas Virtual Currency Act (TVCA)

Landmark legislation that legally defines virtual currency, regulates cryptocurrency firms, and grants rights to cryptocurrency investors in Texas.

Texas Department of Banking (TDB)

The state banking regulator that has issued guidance on the legal treatment of virtual currencies and the ability of Texas banks to offer cryptocurrency custody services.

Governor Greg Abbott

The Governor of Texas who signed the TVCA into law in 2019, establishing a regulatory framework for cryptocurrency in the state.

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What they’re saying

“These new laws will help protect consumers while also allowing the crypto industry to innovate and grow in Texas.”

— Governor Greg Abbott

“The TVCA provides much-needed clarity for cryptocurrency firms operating in Texas and gives investors important legal rights over their digital assets.”

— Amanda Pritchard, Blockchain Policy Advisor, Texas Blockchain Council

What’s next

The Texas Department of Banking is expected to issue additional guidance in the coming months on best practices and regulatory requirements for state-chartered banks offering cryptocurrency custody services.

The takeaway

Texas has emerged as a national leader in cryptocurrency regulation, balancing innovation and consumer protection by legally recognizing virtual currencies, subjecting crypto firms to existing commercial laws, and granting specific rights to cryptocurrency investors. These new laws position Texas as a welcoming environment for digital asset businesses while also safeguarding residents who choose to participate in the crypto economy.