Why Texas is Poised to Lead the U.S. in Blockchain Innovation

Now more than ever, state governments are being asked to step up. The Federal Government is gridlocked, with just two percent of proposed legislation actually becoming law in the 116th Congress that ended on January 3rd of this year. Scoring political points appears to be more important on both sides of the Congressional aisle than passing meaningful legislation, providing regulatory clarity to businesses and communities, or improving government services. The lack of clarity from the Federal Government regarding financial services regulation in the cryptocurrency, blockchain, and digital asset space creates a climate of uncertainty that hampers business. Various regulatory bodies vie for turf, which results in the issuance of conflicting guidance. What is more, the blockchain industry lacks champions in the bureaucracy, at the Fed, at regulatory bodies like the SEC (Hester Peirce being a notable exception) or in other strategic positions.  

It seems that the further one moves from Washington D.C., the more likely one is to come across government that works.  

Texas provides an excellent example of a jurisdiction that is focused on getting things done. While Texas is not immune from partisan politics, gridlock, or ineffective government, on the whole, businesses and individuals have voted with their feet that Texas is a great place to live and work. Approximately half a million people move to Texas each year, with many coming from California and the Northeast. A flood of businesses are relocating to Texas as well. Leading technology firms like Tesla, Apple and Google have recently expanded operations in Texas, while other well-established, household names like Charles Schwab, CBRE, McKesson, HP, and Oracle relocated their corporate headquarters here recently.  

Despite this spike in capital investment from business, however, Texas is late to the game on public policy initiatives aimed at supporting blockchain and crypto innovation. Wyoming has led the way in this area, passing more than ten substantive pieces of blockchain, crypto, and business law legislation in recent years. Texas can affirm the direction that Wyoming set out by taking a leading role in demonstrating to the Federal Government that the various state governments and their constituents understand the importance of blockchain technology. This is a matter of importance not only for Texas, but for the entire US economy.  

The U.S. will not retain our economic dominance if we remain on the sidelines in the development of the internet of value. The Texas Blockchain Council exists to make sure that Texas leads the way in prioritizing this new infrastructure for creating, registering, and transmitting value. The size and dynamism of the Texas economy make it an ideal place to host innovative companies working on blockchain and other emerging technology solutions—and the TBC wants to ensure that our state regulatory environment supports that promise. 

In the past year that we have existed as an organization, the TBC has already made tremendous progress in making blockchain a priority issue for the Texas state government. Four blockchain bills that we have researched and advocated for are currently moving through the 87th State Legislative Session. It’s clear that nonpartisan, revenue-neutral policies that promote technology innovation are good for Texas. If you believe in our mission and want to support it, now’s the time to join the movement.