Full disclosure, I’m an adopted Texan. I wasn’t born or raised in Texas, but my family and I moved from Washington, D.C. in 2007 and I have called it home ever since. Although this fact may, reasonably, color my views, it has been a remarkable place to watch economic growth and the adoption of the digital asset economy.
In general, Texas has always been a business-friendly environment. However, a series of recent moves by Texas lawmakers shows a deliberate effort to establish a business and, specifically, a digital asset business destination. Texas has embraced digital asset innovation – Bitcoin mining, financial services, and Web3, as well as blockchain and associated other companies in this new and growing industry. Most recently, Texas established the Texas Strategic Bitcoin reserve which allows the investment of public funds into digital assets. As expected, this will be managed by the Texas Comptroller. This creates a very conducive environment for digital asset and other traditional companies. Another significant step in making Texas a catalyst for economic growth is the creation of the Texas Stock Exchange (TXSE) that intends to open in 2026. Texas is proving that southern hospitality extends not only to the people who visit, but to businesses as well.
Business Friendly Laws And New Business Courts
Full disclosure, again, I’m a litigator handling corporate, tax, white-collar, and other financial disputes. Although inherently disruptive, litigation is sometimes the only way for parties to resolve disputes and be able to carry on their respective business. Even with the best. Texas has legislated a two-phase approach: creating laws that will reduce disputes and also creating specific courts. The intention is to allow for a more streamlined approach to resolving complex business disputes outside of the regular state court system.
On May 14, 2025, Texas Governor Greg Abbott signed Senate Bill 29 into law that immediately became effective. The legislation codified the “business judgment rule” which created a presumption that the directors and officers of corporations acted in good faith, on an informed basis, in furtherance of the interests of the corporation, and in obedience to the law and the corporation’s governing documents when taking action on matters of the corporation’s business. In order to establish a cause of action the corporation or its shareholders must rebut these presumptions and prove a breach of their duties involving fraud, intentional misconduct, an ultra vires act (i.e. outside scope of powers), or a knowing violation of law. Senate Bill 29 also codified the right of a Texas entity to include a provision in its operating documents waiving a right to a jury for any “internal entity claims.” In a new and developing industry, especially one based on new technologies like Distributed Ledger Technology and other technology related to digital assets, directors and officer are more likely to exercise “business judgment” on how to operate and grow the company. If that judgment is subject to easy lawsuits second-guessing hard choices, or using hindsight analysis, it can hold back innovative decision-making or paralyze a growing company while it waits for lengthy litigation to conclude. The new law allows the governing documents to require that internal entity claims be brought in Texas courts, including the newly established Texas Business Courts.
The Texas Business Court is a statewide, specialized trial court created to resolve certain complex business disputes. The Texas Business Courts opened on September 1, 2024 with the judges appointed by the governor for a two-year term (instead of elected). The law required that these judges must have had at least 10 years of practice in civil business litigation, business transaction law, or service as a civil judge. The new courts have limited jurisdiction (e.g. larger amounts in controversy, specific issues such as corporate governance, etc.) which means a smaller docket of cases and the presumption of faster resolution. Since the business courts are still relatively new, it will take time to determine exactly what types of business disputes benefit from this specialization. All eyes are on Texas to determine if time is saved by the smaller, more specialized, caseload.
Texas Stock Exchange
Backed by financial giants like BlackRock and Citadel Securities, the Texas Stock Exchange (TXSE) has the funding to create a pro-business, innovation-friendly alternative to traditional exchanges like the New York Stock Exchange and the Nasdaq. TXSE is, of course, focused on traditional financial products but has the opportunity to differentiate itself as a digital asset focused exchange.
BlackRock runs popular Exchange Traded Funds (ETF) for both Bitcoin and Ethereum leading the presumption that similar products will be offered on TXSE. Also, publicly traded companies involved in Bitcoin mining are already available on other exchanges. For examples, popular cryptocurrency exchange Coinbase Global was recently added to the S&P 500. Circle Internet Group, a stablecoin market leader, recently applied to establish a national trust bank in anticipation of meeting requirements under recent stablecoin legislation to integrate digital assets into the broader financial system. Today, there is a lot of movement in traditional equity markets to incorporate digital asset financial products. This is happening just as a new national stock exchange, TXSE, is seeking to provide an alternative to traditional platforms. Thus, TXSE has the greatest opportunity to truly integrate both digital asset and traditional markets since it starts with a cleaner slate than the older established stock exchanges.
Why The Texas Strategic Bitcoin Reserve Matters
Texas wasn’t the first state to create a strategic Bitcoin reserve, but its version did go a little further than similar legislation. The first such law was incorporated in New Hampshire, but did not that state’s reserve to be funded by public dollars. However, on June 20, 2025, Senate Bill 21, created the state-managed Texas Strategic Bitcoin Reserve. This legislation outlines the intent to use the digital asset reserve as a financial buffer, hedging against inflation and economic volatility. The Texas Bitcoin Reserve will be funded by airdrops, legislative appropriations, revenue dedicated by general law, cryptocurrencies acquired through forks, and investment earnings or rewards. This is a significant difference, since Texas has decided to put its own money at risk as a sign to digital asset companies that it is willing to take the same risks on this new asset and industry. At the federal level, Treasury Secretary Scott Bessent has also indicated a willingness to potentially “acquire more Bitcoin” to increase the United States’ Bitcoin reserve. Texas is one of the largest economies in the world, and it has already committed to invest in Bitcoin as a method of protecting the finances for its citizens. That is unique among other government institutions – at least for now.
Conclusion
When I first moved from Washington, D.C. to Texas, I was a bit concerned that my east coast personality might not mesh well with the local culture. However, the cliche’ of southern hospitality has proven true, both personally and professionally. I’ve watched the same welcoming attitude apply to many businesses that have decided to also make Texas their adopted homes. This has included many digital asset and blockchain based companies during a time when it was not as mainstream to be operating those types of ventures. In the best adopted Texan spirit I can muster – Y’all should come and check out Texas.
This article was originally published on Forbes.com on August 18, 2025.