AUSTIN — Texas Attorney General Ken Paxton walked out of a press conference Tuesday as reporters pressed him on his office's position on Texas House Bill 32. The proposed state framework for digital asset licensing passed the House 98-47 in May but faces an uncertain path in the Senate. Paxton offered no comment on the legislation or on campaign contributions from industry groups. His silence leaves the state's most powerful legal office without a public stance.
Major crypto exchanges and blockchain firms spent $1.5 million lobbying Texas lawmakers in the second quarter, according to state ethics commission filings. Coinbase, Ripple and Block all registered significant expenditures targeting the bill. HB 32 would establish a state-level regulatory sandbox, easing entry for new digital asset firms and offering an alternative to federal oversight.
Paxton's exit complicates the bill's future and directly affects firms that have invested heavily in its passage. His silence signals potential opposition or a deliberate delay, undercutting industry groups pushing for favorable state rules. Proponents say the bill would draw digital asset investment to Texas and position the state as a leader in blockchain technology.
The standoff reflects growing tension between state and federal approaches to crypto regulation. SEC Chairman Paul Atkins has consistently pushed for federal preemption on digital asset oversight, arguing for a unified national framework to prevent regulatory arbitrage. Texas, alongside Wyoming and Florida, has pursued state-specific frameworks, viewing them as competitive advantages to attract crypto businesses and capital.
The Texas Senate Committee on Business & Commerce has scheduled a hearing on HB 32 for Aug. 15. Paxton's office has not indicated whether he will testify or send a representative, leaving his position on the legislation opaque.
