The short version

On July 8, 2026, our lawyers at Quinn Emanuel filed a Motion for Summary Disposition in SOAH Docket No. 312-26-14427. Translation: we asked the Administrative Law Judge to end the case now, on the merits, without needing a four-day hearing in August.

The motion is backed by two sworn documents that are pinned to IPFS and linked at the bottom of this post:

On July 8, 2026, our legal team filed a Motion for Summary Disposition asking the ALJ to throw out the TSSB's case before we ever get to the August hearing. Backed by a sworn declaration from founder Bobby Gray and a full expert report from a forensic accountant and blockchain specialist, the filing lays out — in painstaking detail — why Mining Packages are not securities, why TXC is a digital commodity, and why the whole thing should end now.

• A declaration from founder Bobby Gray stating on the record how TEXITcoin, MineTXC, and Blockchain Mint actually operate.
• A 26-page expert report from Andrew Sotak, CPA — a Senior Managing Director at Ankura Consulting Group who leads their Cryptocurrency Working Group, and who has been retained on cases by the DOJ, SEC, and a CFTC-appointed Receiver.

Both documents point at the same conclusion: the TSSB is trying to force a proof-of-work mining pool into a securities box it was never built to fit.

Here is the full unpack — what was filed, what it argues, and what it means for the August 17–20 hearing.

Why "Summary Disposition" matters

A Motion for Summary Disposition is the administrative-law cousin of a motion for summary judgment. It says to the judge:

"Even if you accept every fact the other side alleges, they still lose as a matter of law. Please rule now — no need for a full trial."

If the ALJ agrees on any of the counts, that count is gone. If she agrees on all of them, the Cease & Desist Order gets set aside and the case is over. Either way, this filing forces the TSSB to defend its legal theory in writing, right now, months before the hearing.

That is the point. We would rather win on the law than roll the dice on a four-day hearing.

What Bobby swore to, under penalty of perjury

Bobby Gray's declaration is short — two pages — and it is deliberately narrow. It states the facts of the operation, not the legal conclusions. The highlights:

1. TEXITcoin, MineTXC, and Blockchain Mint are brand names. None of them is incorporated. There is no company issuing shares. There is no cap table.
2. TEXITcoin is a Layer-1 blockchain. TXC is its native digital token.
3. Blockchain Mint manufactures cold-storage wallets shaped like physical coins and handles bookkeeping, advertising, and promotion for the project.
4. MineTXC sells mining packages and operates four industrial mining sites in Texas — Victoria, Conroe, Mansfield, and McKinney.
5. Qualifying customers can take physical possession of an ASIC and mine at home. More than 200 home mining units have already been distributed.
6. Package funds paid the real costs of the operation: new mining hardware, leases, electricity, promotional events, back-office, and commissions to purchasers who recruited others. Anything left over was Bobby's profit — like any other business owner.
7. Purchasers were entitled to a pro-rata daily distribution of mined TXC, and nothing else. No profit guarantee. No equity. No ownership stake in any entity.
8. Every single distribution went out on time, into each purchaser's wallet, every day — until the TSSB order forced sales to stop.
9. All commissions owed have been paid in full.
10. Since the order, MineTXC has stopped selling mining packages and taken the financial hit that goes with it.

That last one matters. We complied first, then fought. That is the opposite of what the "immediate and irreparable harm" language in the C&D was designed to prevent.

What the expert says

Andrew Sotak's report is where the real damage to the TSSB's theory happens. It is a formal expert report prepared under AICPA standards, with a full CV, a documents-considered list, and six numbered opinions. Every opinion is footnoted to primary sources — the TEXITcoin whitepaper, SEC glossaries, CoinMarketCap definitions, the March 2026 SEC interpretive release, sales spreadsheets, and on-chain transaction hashes on our own explorer.

The six opinions, in plain English:

Opinion 1 — TXC is a digital commodity, not a security.

TXC is the native token of a permissionless, decentralized, proof-of-work Layer-1 blockchain. It was not sold to raise capital. It is issued algorithmically to whoever contributes hash power. Sotak walks through the SEC's own definitions of "digital commodity" and concludes TXC fits squarely inside them.

Opinion 2 — Mining Package purchasers joined a mining pool.

When a customer bought hash power, they were pooling their share of mining capacity with everyone else and receiving a pro-rata portion of what the pool mined. That is the textbook definition of a mining pool — one used by the SEC in Interpretive Release 33-11412 (March 2026).

Opinion 3 — MineTXC performed the functions of a mining pool operator.

Running the rigs, keeping them online, distributing rewards on schedule — those are pool-operator functions. The SEC's March 2026 release explicitly says pool-operator activity does not, by itself, involve the offer and sale of securities.

Opinion 4 — Customers could take physical possession of rigs, and most chose not to.

The at-home option existed. More than 200 rigs went out. Most customers simply preferred not to run a loud, hot, industrial ASIC in their garage — which is a preference about convenience, not evidence of a passive investment scheme.

Opinion 5 — Respondents operated as advertised.

Sotak traces specific on-chain transactions on the TEXITcoin explorer showing distributions going out to hundreds of addresses on the schedule and in the amounts that were promised. No hidden minting. Every TXC that has ever existed came from the normal proof-of-work issuance schedule described in the whitepaper.

Opinion 6 — Under U.S. GAAP, Mining Packages are contracts with customers under ASC 606.

This is the accounting knockout. Under Generally Accepted Accounting Principles, a Mining Package is properly classified as revenue from a contract with a customer (ASC 606) — the same category as a software subscription or a service agreement. It is not an equity security (ASC 321) and not a debt security (ASC 320). No shares are issued. No debt is created. The seller does not record anything in an equity account.

That is a forensic accountant testifying under professional standards that the underlying transactions are not securities transactions at all — they are service contracts.

Why this matters for August

The TSSB's Emergency Cease & Desist Order rests on a single legal claim: that Mining Packages are unregistered securities under the Texas Securities Act's version of the Howey test. Our defense has always been that they fail Howey — no promise of profits, and any value in TXC comes from the community using it, not from anyone's managerial efforts.

The Motion for Summary Disposition converts that defense from an argument you make at a hearing into a paper record the ALJ can rule on right now. The Bobby declaration locks in the operational facts. The Sotak report locks in the technical, economic, and accounting characterization.

Combined with the SEC's March 2026 interpretive release (already covered in an earlier legal update, and now cited throughout the expert report), it puts the TSSB in the position of arguing that Texas securities law should treat proof-of-work mining differently than federal securities law does. That is a very lonely place to stand.

What happens next

• The TSSB will file a response.
• The ALJ can grant the motion in full, grant it in part, or deny it and send everything to the August 17–20, 2026 hearing in Austin.
• Either way, we are prepared. In-person, on the merits, with the receipts.

We will post every material filing and ruling — TSSB's response, the ALJ's decision on the motion, and everything after — to the legal updates page as it happens.

The primary sources

Everything below is pinned to IPFS. No edits, no summaries — the actual documents that got filed.

• Declaration of Robert J. Gray — Bobby's sworn statement of the operational facts.
• Expert Report of Andrew Sotak, CPA — 26 pages, six numbered opinions, fully footnoted.
• Motion for Summary Disposition — Consolidated Exhibits, Part 1 — the exhibits attached to the motion.

If you want the bigger regulatory picture around all of this, our SEC & Crypto deep dive walks through how U.S. securities regulators have actually engaged with crypto over the past decade, and why proof-of-work mining sits outside the frame they were built for.

We got this.