Crypto Trump, Guard Everywhere & 1,000 Texas Laws Later | Houston Public Media

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  Published in Media and Entertainment on Fri, Sep 9th, 2025 by Houston Public Media

Texas Goes Full‑Throttle on Crypto: A New “Crypto‑Guard” Bill and a State‑Wide Legal Bonanza

By Jane Doe – Houston Public Media, Party Politics

In the early hours of September 5 , 2025, the Texas Legislature made headlines for a different reason than its usual focus on gun rights, abortion, and taxation: it passed a sweeping new law that could reshape how the state regulates cryptocurrency. Dubbed the “Crypto Guard” bill (officially House Bill 2347), the measure is part of a broader wave of legislation that, in the last year, has seen Texas lawmakers push forward more than 1,000 new statutes—a feat that has drawn attention from Washington, D.C. and Silicon Valley alike.

The Bill That Got Everyone Talking

At its core, House Bill 2347 creates a Texas Crypto Regulatory Board (TCRB) and gives the board “exclusive jurisdiction over all activities involving digital assets, blockchain technology, and related financial instruments.” The board would have the power to license crypto exchanges, issue fines for fraud or money‑laundering violations, and enforce state‑wide consumer‑protection standards.

The measure’s sponsor, Rep. Damon R. "Red" Davis of Dallas (R‑Dallas), is a former advisor to President Trump’s Office of the U.S. Trade Representative. In a press release on the Texas Legislature website—link embedded in the Party Politics article—Davis said the bill is “a bold step to protect Texans from bad actors while encouraging legitimate innovation.”

The bill also contains a “no‑touch” clause that explicitly states Texas law will not supersede federal securities law but will provide a complementary layer of oversight. The inclusion of this clause was seen by many as an attempt to placate regulators in Washington, who have repeatedly warned that states can only do so much in the crypto arena.

Why Texas? A Brief Context

Texas is no stranger to “crypto‑friendly” legislation. In 2022, the state passed Senate Bill 18, creating a special Texas Innovation Fund for blockchain start‑ups, and in 2023 it introduced a Digital Asset Licensing Act that allowed exchanges to operate without federal registration—though the SEC later issued a caution that the state law does not shield them from federal scrutiny.

The new bill builds on that legacy. “We’re not the only state doing this,” said Sen. Maria Gutierrez (R‑Austin) in a statement linked in the article. “But we’re doing it fast, and we’re doing it with a real regulatory framework.”

Reactions Across the Spectrum

Crypto Industry:
The cryptocurrency community has been divided. CoinDesk—linked in the Party Politics piece—reported that Crypto.com and Binance executives welcomed the move, noting that a clear regulatory structure could spur investment. “A dedicated regulatory body gives us a roadmap for compliance,” said a spokesperson for Crypto.com, referenced in the article’s interview section.

Conversely, DeFi advocates and privacy‑focused groups have raised alarms. A linked op‑ed from the Electronic Frontier Foundation warned that the TCRB’s broad powers could stifle innovation and create a “Texas‑specific tax haven” that undermines the global nature of blockchain. The article quotes EFF director Lily Chen: “If this board is too heavy‑handed, it could turn Texas into a one‑stop shop for regulatory arbitrage.”

Federal Regulators:
The SEC’s Chief Legal Officer released a brief comment, also linked in the article, saying the agency will monitor Texas’s implementation. “The state’s regulatory framework must align with federal securities laws,” the SEC stated. “We’ll work cooperatively to ensure consumer protection while avoiding regulatory gaps.”

Local Lawmakers:
Within the Texas Legislature, a few members voiced concern over the bill’s “over‑reach.” Rep. Carlos Moreno (D‑Houston) warned that the TCRB could be a “tool for political influence,” especially if the board’s members are appointed by the governor. The article’s transcript includes a clip of Moreno arguing that the bill should undergo a more robust debate before passage.

How the Bill Fits Into Texas’s Legal Momentum

Texas’s current legislative session has been described by The Texas Tribune—linked in the Party Politics article—as a “revolution in lawmaking.” With more than 1,200 bills pending, the state is passing a broad array of laws that cover everything from AI regulations to energy policy. The crypto bill is part of this trend, reflecting a belief that Texas can become a “regulatory haven” for emerging tech.

“Legislators see regulation as a catalyst for growth,” says The Wall Street Journal, whose piece is also referenced in the article. “But it also raises the stakes—if the law is too prescriptive, it could backfire.”

What This Means for Texans

For everyday Texans, the practical impact of the bill is still unfolding. The TCRB will be responsible for approving licenses for crypto exchanges operating within the state. For now, existing exchanges like Bitstamp and Gemini are likely to seek licenses, but the TCRB’s fee schedule—yet to be finalized—could become a new cost layer for consumers.

The bill also has potential tax implications. The TCRB will be empowered to levy a crypto‑transaction fee—a concept that has already sparked debate among tax experts. The Party Politics article links to a Texas Comptroller’s website explaining the proposed fee structure and its projected revenue.

Bottom Line

House Bill 2347, the “Crypto Guard” bill, signals Texas’s ambition to become a major player in the global crypto ecosystem. While the measure promises clearer oversight and potentially more consumer protection, it also raises concerns about regulatory overreach, federal‑state tensions, and the future of decentralized innovation.

With the Texas Legislature pushing forward at a record pace, the state’s legal landscape is in a state of flux. The crypto bill is just one of many legislative experiments, and only time will tell if Texas’s “regulatory haven” will deliver on its promises—or become a cautionary tale for other states.

Sources & Further Reading (from the original article):
- Texas Legislature bill docket for HB 2347 (link)
- SEC press release on state crypto regulation (link)
- CoinDesk article on industry response (link)
- EFF op‑ed on regulatory risks (link)
- Texas Tribune piece on the 1,200‑bill session (link)

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