TEXITcoin vs. TSSB – Real-Time Updates

In an effort to provide our community with as much transparency as attorney-client privilege allows, we’re sharing real-time legal updates right here.

This series lays out the factual chronology of events since the Texas State Securities Board’s February 11, 2026 Emergency Cease and Desist Order (ENF-26-CDO-1893), our ongoing compliance efforts, key strategic decisions, expert work, hearing prep, and how recent federal developments (like the SEC’s March 17, 2026 guidance on proof-of-work mining) align with our position.

We’ll keep adding new posts and refining the master timeline as things progress—no spin, just the facts, our side of the story, and what’s coming next.

Stay tuned, stay engaged, and know that we’re fighting this on the merits so we can deliver lasting clarity and continue building honest, utility-driven money together. We got this.

TL;DR

Our Texas SOAH hearing is scheduled for August 17-20, 2026
Sales are not available in Texas until the Cease & Desist is lifted
Avi Perry from Quinn Emanuel leads our legal team
Including retainers, $723,000 spent so far on legal costs
TEXITcoin network remains active, no disruption in service to community

17 Mar 2026

New SEC Crypto Guidance

The SEC's March 17, 2026 Interpretive Release No. 33-11412 — titled "Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets" — is a landmark step toward regulatory clarity after over a decade of uncertainty. Jointly supported by the CFTC, it provides a coherent taxonomy classifying most crypto assets (e.g., digital commodities like those on functional PoW networks) as not securities, while explicitly stating that protocol mining on public proof-of-work networks — including mining activities, pool operations, reward earning/distribution — does not involve the offer and sale of securities under the Howey Test, as there's no reasonable expectation of profits derived solely from the entrepreneurial or managerial efforts of others.

This guidance directly helps our defense against the TSSB's Emergency Cease and Desist Order. The order's core premise — shoehorning our Mining Packages into unregistered securities based on alleged passive returns and MLM-like incentives — is now at odds with federal standards.

TEXITcoin's model involves genuine PoW mining tied to network security and community-driven utility (value from real usage, market dynamics, and active participation, not promoter guarantees), aligning precisely with the SEC's view that such activities fall outside securities law when no passive profit promises dominate.

Our Quinn Emanuel team and expert witness are already integrating this release into our evidence file and hearing prep for August 17–20, 2026. It strengthens rebuttals on the Howey prongs we fail (no guaranteed profits; value from community adoption, not others' efforts) and underscores the order's thin evidentiary basis (no harm, no fraud proof). This federal clarity bolsters our argument for modification or withdrawal of the order, protects our community, and supports long-term growth as honest, utility-focused money — no pivots needed. Stay tuned as we weave this into the full case presentation.

https://ipfs.blockchainmint.com/ipfs/QmdKWzWfsft598GddznvVwRy8fZttiVHrokQuDUANBd4Tj

16 Mar 2026

Hearing Date Secured

We are pleased to confirm that the hearing date has been secured: the State Office of Administrative Hearings (SOAH) has issued an Order Scheduling Hearing on the Merits in Docket No. 312-26-14427, setting the contested case hearing for August 17–20, 2026, starting at 9:00 AM (CT). Though we were offered the opportunity to present our facts and evidence via remote Zoom videoconference, we elected instead to attend the hearing in person.

This multi-day proceeding before the Administrative Law Judge (ALJ) provides the full forum to present our evidence file, expert testimony (including our blockchain/PoW mining specialist), witness statements, exhibits, and legal arguments to demonstrate that the Mining Packages are not securities, that the order lacks proof of harm or fraud, and that the TSSB's allegations are flawed under Texas law and SEC guidance on proof-of-work mining.

The order outlines clear procedural steps, and our Quinn Emanuel team is already coordinating to meet all deadlines and ensure a strong, organized presentation.

With this date locked in, we have the roadmap to a merits-based resolution—allowing us to refute the order point-by-point, protect our community, and achieve the clarity needed to continue building honest, utility-driven money without unnecessary regulatory overreach. Stay tuned as we prepare; this is the stage where facts and evidence win.

https://ipfs.blockchainmint.com/ipfs/QmTLdYZAutr4nQswynGiwKr8qtenn36KSzfQXmFmVUsCpN

11 Mar 2026

Our Basic Legal Framework

Now that we've consulted with counsel and our secured expert (a blockchain and PoW mining specialist), we can share a clear, high-level overview of the framework guiding our defense against the TSSB's Emergency Cease and Desist Order.

The TSSB appears to be shoehorning our Mining Packages—real proof-of-work mining opportunities tied to a community-driven blockchain—into a securities framework because they resemble an MLM structure on the surface. However, we're operating in good faith under a regulatory lens that's still as clear as mud, even as we align closely with the SEC's March 20, 2025 Statement on Certain Proof-of-Work Mining Activities, which clarifies that genuine PoW mining activities (solo or pooled) do not involve the offer and sale of securities, as there's no reasonable expectation of profits derived solely from the entrepreneurial or managerial efforts of others.

Under the Howey Test (the key framework Texas applies via cases like Searcy v. Commercial Trading Corp.), our model fails at least two prongs:

(1) there is no promise or guarantee of profits—returns are market-driven and variable based on network performance, not fixed or assured; and (2) any value in TEXITcoin comes from community usage and real-world adoption (e.g., as a functional currency), not passive reliance on promoters' efforts—if the community doesn't build utility, it's just a hobby-level project with no inherent profit expectation from others.

This isn't fraud or passive investment; it's active participation in a decentralized, mineable ecosystem. Our evidence file, expert testimony, and hearing strategy will demonstrate this misalignment with securities law, aiming for a full resolution that protects holders and provides lasting clarity.

11 Mar 2026

First Expert Selected

We have now secured our first expert witness—a highly reputable specialist with deep expertise in blockchain technology, proof-of-work mining operations, mining pools, and the technical and economic realities of cryptocurrency ecosystems.

This expert is well-positioned to provide clear, authoritative technical analysis that directly addresses the core of the TSSB's allegations: demonstrating why genuine proof-of-work mining activities, including the structure and function of Mining Packages, do not constitute an investment contract or security under the Howey Test or Texas Securities Act standards.

Our case grows stronger with each piece of the defense coming together. By presenting reputable experts who can explain these often-confusing concepts in straightforward, evidence-based terms to the Administrative Law Judge (ALJ), we will effectively show that our model aligns with established non-security precedents in crypto mining—focusing on active network participation, real-world utility, and the absence of passive profit expectations derived solely from the efforts of others.

This expert testimony, combined with our secured evidence file and the Quinn Emanuel team's strategy, positions us to deliver a compelling, merits-based rebuttal at the hearing and secure the clarity our community deserves.

25 Feb 2026

Keep Moving Forward

Amid the challenges posed by the TSSB’s Emergency Cease and Desist Order, we made the deliberate and principled decision to keep moving forward—not by abandoning our core mission, but by adapting strategically while staying true to the vision of TEXITcoin as honest money and a genuine community currency.

As Bobby Gray emphasized in a recent Zoom call excerpt (Mission Reset – No Pivoting), "Honest Money doesn’t pivot." We refuse to abandon the U.S.-rooted mission or transform into just another overseas cloud mining project that chases hype without real utility. International expansion through Iskander continues, but it must always tie back to the foundational principles: utility must exist in the real world, and credible implementation as a community currency in the U.S. remains essential for long-term legitimacy and credibility.

The obstacles—including the sales halt, regulatory scrutiny, and uncertainty—are real, yet they reinforce our commitment: price does not come from hype,

influencers, or passive promises (which would only bolster the TSSB's "security" allegations). True value emerges from usage—turning TEXITcoin (TXC) into a functional community currency through initiatives like Downtown Digital Dollars, Fair & Festival cashless payments, Layer 2 applications, and active merchant participation. If holders wait for others to create value, it inadvertently strengthens the regulatory narrative we're fighting; instead, we double down on real-world utility as priority #1.

This path forward reflects resilience, not retreat: we're complying fully in Texas while building utility-driven growth elsewhere, protecting the project's integrity, and positioning TEXITcoin to deliver honest, usable money for the community—no pivots, no shortcuts, just determined execution toward lasting value.

24 Feb 2026

TSSB Evidence File Secured

With the evidence file now secured and under review by Quinn Emanuel's team, we are in a strong position to challenge Order No. ENF-26-CDO-1893 in the upcoming administrative hearing.

The TSSB's emergency cease and desist order, and accompanying evidence file, is remarkably thin on substantive proof: it contains no allegations or evidence of actual investor losses or financial harm to any participants, no demonstration of imminent or ongoing irreparable injury beyond speculative regulatory concerns, no claims of misuse, misappropriation, or theft of funds, no assertions of a Ponzi scheme or unsustainable structure, no specific proof of fraud such as fabricated statements or deceptive practices causing detriment, and no identified injured parties or complainants who suffered quantifiable damage.

Instead, the order relies primarily on structural interpretations—that the Mining Packages constitute unregistered securities due to daily mining rewards, multi-level marketing-like incentives, and alleged omissions of material facts—without backing these with concrete evidence of wrongdoing or victim impact that would typically justify an emergency action under Texas Securities Act standards.

This evidentiary gap underscores our confidence that a full, merits-based hearing will reveal the order as overbroad and unsupported, allowing us to present our compiled file to secure its modification or withdrawal and provide lasting clarity for the project.

21 Feb 2026

10 Day Hearing Option Declined; Timeline Unknown

After consulting with Avi Perry and the Quinn Emanuel team, we made the strategic decision to waive any accelerated 10-day hearing option under Texas administrative procedures for emergency cease and desist orders. Avi's candid assessment was clear: we could push for a hearing in as little as 10 days if we wanted, but rushing it would likely result in a loss due to insufficient time to mount a proper defense.

Building a winning case requires substantial time for strategy development, thorough research, evidence collection, securing expert witnesses (who can't simply argue points without preparation), and comprehensive preparation—rushing would undermine our ability to fully refute the TSSB's allegations on the merits, including the flawed application of securities law to our Mining Packages.

By waiving the expedited timeline, we prioritize a well-prepared, evidence-driven hearing that positions us for a decisive victory—one that not

only sets aside or modifies Order ENF-26-CDO-1893 in Texas but likely resolves similar regulatory concerns nationwide, providing long-term clarity and protection for the project and community. While this means the hearing could be scheduled months later (exact date TBD as the administrative process unfolds via SOAH), it allows us to compile a robust evidence file, present experts effectively, and fight on our strongest terms rather than risk a premature setback.

20 Feb 2026

TSSB Order Challenged; Hearing Requested

Today, Quinn Emanuel Urquhart & Sullivan LLP formally submitted a hearing request to Deputy Securities Commissioner Cristi Ramón Ochoa on behalf of TEXITcoin, MineTXC, Blockchain Mint, and founder Robert J. (Bobby) Gray, challenging the Emergency Cease and Desist Order under Texas Government Code § 4007.104(c). The filing asserts that the Mining Packages do not qualify as securities under the Texas Securities Act—specifically failing to meet the "investment contract" test from SEC v. W.J. Howey Co. (as applied in Texas via Searcy v. Commercial Trading Corp.)—and highlights that the U.S. Securities and Exchange Commission's March 20, 2025 Statement on Certain Proof-of-Work Mining Activities supports the view that genuine cryptocurrency mining activities do not involve the offer and sale of securities, as there is no expectation of profits derived solely from the entrepreneurial or managerial efforts of others.

The request emphasizes the order's fundamental flaws: its fraud allegations lack any claim of specific false statements, fail to establish a duty to disclose purported omissions (such as a decade-old personal bankruptcy),

and provide no evidence of materiality to reasonable investors. Critically, the order and accompanying TSSB press release allege "immediate and irreparable public harm" without identifying any actual investor losses, misappropriation of funds, or injured parties—undermining the basis for emergency action.

Additionally, the filing argues that TEXITcoin and Blockchain Mint were improperly named as respondents, as the Mining Packages were sold by MineTXC, and requests prompt modification to remove them. It confirms full ongoing compliance (no Mining Packages available for purchase) while reserving rights to supplement grounds and challenge the order fully.

We requested a meeting with the Enforcement Division to discuss positions, confirmation that the hearing right is preserved, and agreement on a proposed hearing date and briefing schedule before the State Office of Administrative Hearings (SOAH). This step marks our commitment to a thorough, evidence-based defense—presenting the secured evidence file, expert analysis, and operational realities—to modify or set aside the order on the merits and achieve lasting clarity for the project and community.

https://ipfs.blockchainmint.com/ipfs/QmaXHTFwDKvw1jJmTEmJR9VTo3otD3QifCnpXm9X8fRjff

16 Feb 2026

Quinn Emanuel Retained as Lead Counsel

We recruited Quinn Emanuel Urquhart & Sullivan LLP to lead our defense, selecting them for their unmatched track record in high-stakes securities litigation, cryptocurrency enforcement challenges, and aggressive trial advocacy against regulators like the SEC and state boards.

Leading the team is Partner Avi Perry, co-Chair of Quinn Emanuel's Securities Litigation Group and a former federal prosecutor who headed the U.S. Department of Justice's Market Integrity and Major Frauds Unit—where he oversaw nationwide prosecutions involving securities, digital assets, commodities fraud, and crypto matters—bringing insider expertise on how regulators build (and how to dismantle) cases like the TSSB's.

Avi and his team of winning experts bring a proven "no-settlement-unless-victory" mentality, with recent successes including securing dismissals of Texas State Securities Board orders against digital asset projects (e.g., Apertum Foundation) by successfully arguing that tokens were not securities, plus landmark wins against agencies like the CFTC—making them the ideal "tigers" to fight for full clarity, refute the allegations on the merits in the administrative hearing, and deliver long-term wins for TEXITcoin and our community.

13 Feb 2026

The Search for Counsel Begins

While evaluating attorneys to defend against the Texas State Securities Board's Emergency Cease and Desist Order, we look for firms with deep, proven experience in cryptocurrency and securities regulatory defense—particularly those who have successfully challenged similar enforcement actions involving unregistered securities allegations, Howey Test interpretations, and state-level crypto orders (including against the TSSB itself).

Key criteria include a demonstrated winning track record in high-stakes crypto litigation and enforcement matters, with attorneys who aggressively litigate rather than default to quick settlements; we want a team with a fierce, no-compromise "tiger" mentality focused on dismantling flawed regulatory theories through evidence, expert testimony, and full hearings rather than conceding ground prematurely.

While budget is a realistic consideration—we sought top-tier capability—but we are willing to invest in elite counsel who can deliver decisive victories and long-term clarity for the project and community.

We want to find professionals who reflect our commitment to mounting a vigorous, merit-based defense in the administrative hearing process, presenting the full facts to refute the order's allegations and secure the best outcome for us & our community.

12 Feb 2026

mineTXC Mining Sales Halted Across the Globe

Immediately following the issuance of the Texas State Securities Board’s Emergency Cease and Desist Order on February 11, 2026, TEXITcoin, MineTXC, and Blockchain Mint halted all new sales and recruitment related to Mining Packages—not only in Texas but across all jurisdictions—to ensure full compliance and avoid any potential further issues while the matter is resolved.

The order specifically prohibits offering or selling unregistered securities in or from Texas, acting as unregistered dealers or agents, and engaging in fraud or misleading statements in connection with such offers, but the team has taken a cautious, broad approach by pausing sales everywhere until clarity is achieved.

We remain uncertain about the precise aspects of our operations that triggered this action, what specific elements regulators view as non-compliant, or how the Mining Packages are being interpreted under securities law, so we are proceeding carefully to eliminate any confusion or uncertainty.

This pause allows us to secure top-tier legal counsel, gather and present evidence in the requested administrative hearing (filed February 24, 2026), and move forward with a clear, compliant path that protects our community and resolves the matter on the merits.

11 Feb 2026

Texas State Securities Board Issues Cease & Desist

Today, the Texas State Securities Board issued Emergency Cease and Desist Order No. ENF-26-CDO-1893 against TEXITcoin, MineTXC, Blockchain Mint, and founder Robert J. (Bobby) Gray. The order alleges that the "Mining Packages" — promoted as seats on a "rocket ship" with daily rewards from TXC cryptocurrency mining — constitute unregistered securities sold through a multi-level marketing structure, involving fraud via misleading statements, lack of material disclosures, and unregistered dealer/agent activity under the Texas Securities Act.

For 98 weeks prior to this action, mineTXC operated as a community currency project in Texas without any prior regulatory incidents or enforcement from the TSSB or other authorities.

We - those named in the Order - are fully complying with the terms — immediately halting new Mining Package sales and recruitment
in Texas — while pursuing a robust legal strategy, aiming to challenge the order as legally flawed and factually unsupported, with the goal of securing clarity and continuing to deliver value to our community.

https://ipfs.blockchainmint.com/ipfs/QmUcdZkxybMPYZ18toy8VWtaz7KoHLKE1SGHmWVUHRcREk