TEXITcoin Provides Update Following Texas Securities Board Hearing

MCKINNEY, TX, October 7, 2026 (EZ Newswire) -- TEXITcoin today provided an update on its ongoing proceedings with the Texas State Securities Board following an August administrative hearing and a subsequent letter from its legal counsel to Texas Governor Greg Abbott.

The September 22 letter, sent by Quinn Emanuel Urquhart & Sullivan and Wright Close Barger & Guzman, cites sworn testimony from Texas State Securities Board lead investigator Phillip Fuselier concerning factual statements contained in the Board's February 11 emergency cease and desist order.

One exchange concerned the order's statement that purchasers “never receive any mining hardware or control over mining hardware.” According to the hearing testimony cited in the letter, Fuselier confirmed that some purchasers had received at-home mining equipment. When asked during cross-examination whether the original statement was false, Fuselier replied, “Correct.” 

In its September 22 letter to Governor Abbott, TEXITcoin's legal counsel also cited testimony concerning other statements contained in the order, including:

• Fuselier's acknowledgement that he was aware before the order was filed of public statements in which TEXITcoin founder Bobby Gray discussed the Mulligan Mint bankruptcy
• Testimony that information concerning MineTXC's assets, liabilities and capitalization had been disclosed on its website
• Fuselier's acknowledgment that he was aware of evidence concerning disclosures around hardware failures, power outages, network disconnections and the location and security of TEXITcoin's mining operations

“The August hearing provided an opportunity for the evidence underlying the Board's allegations to be examined under cross-examination,” said Bobby Gray, founder of TEXITcoin. “We welcome scrutiny of TEXITcoin and believe the full hearing record should be considered before conclusions are reached.”

On August 28, TEXITcoin's legal counsel asked the Board to withdraw the emergency order and dismiss the proceedings. The Board declined. Counsel subsequently wrote to Governor Abbott requesting a review of the agency's conduct and citing testimony from the August hearing.

The proceedings remain ongoing and an administrative law judge has not yet issued a final decision.

The case comes as Texas continues to expand its involvement in digital assets. The state established the Texas Strategic Bitcoin Reserve in 2025, recognising in state law the “strategic potential” of Bitcoin and other cryptocurrencies.

The federal regulatory position around proof-of-work mining has also evolved. In March 2025, staff at the U.S. Securities and Exchange Commission's Division of Corporation Finance published a statement on certain proof-of-work mining activities stating that the protocol mining activities described in the statement do not involve offers and sales of securities.

The SEC statement does not determine the TEXITcoin proceedings, which concern a specific mining participation model.

About TEXITcoin

TEXITcoin (TXC) is a Layer 1 Scrypt Proof-of-Work cryptocurrency mined in Texas, with no premine and no team allocation. TEXITcoin is part of the honest money movement, built on the idea that money should be backed by real work and real infrastructure rather than created by decree. TXC has traded on public exchanges since June 2024. For more information, visit texitcoin.org.

Disclaimer

This press release is for informational purposes only and does not constitute financial, investment, or legal advice, nor an offer to sell or a solicitation of an offer to buy any security, cryptocurrency, or mining participation model. Investing in digital assets involves a high degree of risk, including the potential loss of capital. This statement also contains forward-looking statements regarding ongoing administrative and legal proceedings; actual outcomes may differ materially from expectations, and TEXITcoin assumes no obligation to update these statements based on new information or future developments.

Media Contact

Conor McLarnon
conor@lunapr.io