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‘Only scratching the surface:’ Texas just became the first state to purchase bitcoin

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‘Only scratching the surface:’ Texas just became the first state to purchase bitcoin


The state of Texas recently purchased about $5 million worth of bitcoin through a BlackRock-administered exchange-traded fund, a representative for the state comptroller’s office confirmed in an email to The Dallas Morning News on Monday.

The purchase came several months after Texas Gov. Greg Abbott signed into law Senate Bill 21, a high-profile and controversial legislative effort that enabled the Texas comptroller’s office to establish a publicly funded strategic cryptocurrency reserve.

It also amounts to one of the first-ever cryptocurrency transactions by a state government amid a broader federal and state government embrace of the recently surging crypto industry. Other states, including New Hampshire and Arizona, have passed similar crypto reserve bills.

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And last year, Wisconsin’s and Michigan’s pension funds also purchased crypto, although with the comptroller’s purchase Texas has now become the first state to actually fund such a reserve.

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“The industry is maturing and growing — it’ll continue to become more mainstream, and I think Texas staking out a leadership position will be very beneficial to Texans over time, similar to what the oil and gas industry has done over the last century,” said Lee Bratcher, president of the Texas Blockchain Council, a crypto lobbying group that championed the state legislative effort.

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“I think we’re only scratching the surface,” Bratcher said.

The state made the roughly $5 million purchase through BlackRock’s iShares Bitcoin Trust ETF (IBIT), a fund managed by the major asset management firm that trades in U.S. dollars but generally reflects the price of bitcoin. As of early afternoon Monday, IBIT was trading around $48, reflecting a roughly 20% loss over the past month and a 13% decrease since the beginning of the year.

Those valuations broadly align with the recently highly volatile price of bitcoin: Early this year — amid a crypto frenzy inspired largely by the new, extremely crypto-friendly Trump administration — the world’s predominant cryptocurrency soared to above $100,000 for the first time in its history, and then in early October reached an all-time high above $126,000.

Since then, though, as fears have grown about a cooling economy and a potential AI bubble that could send the stock market plummeting, valuations of cryptocurrencies have also dipped. One bitcoin traded at around $85,000 on Monday, near the digital coin’s lowest price since April.

FILE - In this April 3, 2013 photo, a 25 Bitcoin token is displayed in Sandy, Utah. (AP...

FILE – In this April 3, 2013 photo, a 25 Bitcoin token is displayed in Sandy, Utah. (AP Photo/Rick Bowmer, File)

Rick Bowmer / AP

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‘Placeholder investment’

The state of Texas made its purchase late last month at a price around $87,000, according to a social media post by Bratcher, who said he first learned of the state’s purchase through a recent Zoom call that included acting Texas Comptroller Kelly Hancock. The comptroller’s office did not respond to a question from The News asking about the specific price the state paid for its IBIT purchase.

The ETF purchase is “a placeholder investment,” said Kevin Lyons, a representative for the comptroller’s office, until the agency formally contracts with what it’s referring to as a cryptocurrency custodian. The agency is now reviewing responses from a request for information it issued and will later award an official contract, Lyons said.

While the new state law did not include a specific funding amount, Texas legislators have since allocated $10 million to the reserve. The amount represents a tiny fraction of the state’s $338 billion state budget, although the legislation’s supporters have argued it still amounts to an important measure of support for an emerging industry.

“I think with Texas leading in this way, it’s going to reap benefits for many decades to come across the state,” Bratcher said. “From a job creation perspective to a tax revenue perspective and everything in between.”

Earlier this year, addressing legislators ahead of a vote on SB 21, state Rep. Giovanni Capriglione, R-Southlake — one of the driving forces behind the crypto push — struck a similar note, calling the reserve bill “a forward-thinking measure” that was about “recognizing digital assets not as a trend but as a strategic opportunity” and “strengthening the state’s fiscal resilience.”

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Yet even if Texas’ public crypto investment remains minuscule, many economists and fiscal watchdogs have criticized SB 21 along with other recent pro-crypto legislation on multiple fronts, arguing it amounts to a lobbyist-driven effort that’s likely to benefit the crypto industry much more than the state’s residents.

And while Texas has recently embraced bitcoin mining and other facets of the industry, with even Abbott pushing to make the state a global “crypto leader,” critics have pointed out that cryptocurrency itself has long been plagued by concerns about scams, corruption and energy use.

“It’s also backwards to our values in Texas,” John Griffin, a finance professor at the University of Texas at Austin, said earlier this year.

“Basically you have a conservative legislature saying, ‘We want less government,’ and yet here’s a case where you are wanting or encouraging government to speculate and possibly prop up an asset class.”

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NTSB Confirms Texas Tesla Had 100% Floored Accelerator Pedal During Fatal Crash

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NTSB Confirms Texas Tesla Had 100% Floored Accelerator Pedal During Fatal Crash


In an incident that was horrific beyond words, late last month, a stunned family watched in horror as a car plowed into the Katy, Texas home of a 76-year-old mother and grandmother, killing her. The driver has been charged with manslaughter.

In the aftermath of the crash, it emerged that the car in question was a Tesla, and that the driver was making use of full self-driving mode (FSD) around the time the crash occurred. The victim’s family has named Tesla and the driver as defendants in a lawsuit. But per Electrek, Tesla was able to view crash data very quickly after the incident, and the head of AI at the company, Ashok Elluswamy, said the driver “manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area.”

In the days after the crash, Tesla fans took issue with coverage that characterized the car as in FSD when the crash occurred. CEO Elon Musk seemed to agree, replying to a post, “Yes, this makes no sense. FSD drives slowly through neighborhood streets and this was a high speed crash!”

But Musk seems to be assuming bad faith, as if coverage implied FSD had suddenly shifted into, perhaps, some kind of previously unannounced homicidal maniac mode and attacked a house. If anyone was saying this is what happened, they should apologize. It’s clearly not what happened.

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And on Wednesday, the National Transportation Safety Board (NTSB) largely confirmed Tesla’s version of events. Their report reads, in part:

“Electronic data recovered from the vehicle indicated that before the crash, the driver manually overrode FSD (Supervised) by pressing the accelerator pedal to 100%, and the vehicle’s speed was greater than 70 mph when the crash occurred.”

But cooler heads had noted weeks earlier that, like with good old fashioned cruise control, accelerating doesn’t boot you from FSD. The car takes the input, and stays in FSD. The question isn’t one of mechanics and technology, but one of philosophy: if FSD is meant to be “driving” when someone jams on the accelerator in a residential area, FSD may not be the “driver” in one important sense, but the car was still in FSD mode.

Because as much as Tesla would probably like FSD to be a total non-factor in the incident, that may not be the case either.

ABC News noted that, according to court documents, the driver claimed he “passed out” with the car in FSD on the highway, and that’s the last thing he remembers before the crash. He says he wasn’t sick, and medical records show no seizures, cardiac episodes, drugs, or alcohol.

A local Fox affiliate says records show the car was making deliveries for DoorDash while in FSD in the “hours and minutes leading up to the crash.” While in a neighborhood, it apparently signaled it was going to turn left onto one street, but instead the pedal went to the metal. This took the Tesla onto the victim’s cul-de-sac instead, and put it on its fateful collision course with her house.

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To make matters weirder, other court records now show, per Electrek, that the driver had Googled the terms, “Tesla fsd not aggressive enough 2026,” “FSD is not aggressive enough for city driving,” and “Tesla fsd too timid.” That’s the kind of thing you Google when you’re looking for a Reddit post from someone sharing your consumer gripe.

In any case, the odds aren’t good that the driver wanted this to happen, nor that Tesla programmed its cars with evil intent. But FSD was being used around the time of this unusual fatal incident, and the public deserves to know more. Fortunately, a lot more will come out as the lawsuit progresses.



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Texas AG secures 23andMe bankruptcy settlement after 2023 data breach

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Texas AG secures 23andMe bankruptcy settlement after 2023 data breach


AUSTIN – Texas Attorney General Ken Paxton said Wednesday he has secured a settlement of bankruptcy claims against genetic testing company 23andMe stemming from a 2023 data breach that exposed personal information, including some genetic ancestry data, of 6.9 million customers worldwide.

Paxton’s office said the settlement includes $150 million for a multistate coalition of 42 states. But because of limited funds in 23andMe’s bankruptcy estate and competing claims, the states’ recovery will be $18 million paid immediately, with Texas receiving $1,266,860.

23andMe disclosed in October 2023 that attackers had accessed accounts affecting 6.9 million consumers. Some of the information was later posted for sale on the dark web, according to Paxton’s office, which said the company learned of the breach months after the data became publicly available. The office said 23andMe initially denied a breach and later blamed consumers’ account settings and password practices.

Paxton joined a multistate investigation that concluded 23andMe used unreasonable security practices and failed to implement adequate safeguards against hacking, the office said.

23andMe filed for bankruptcy protection in March 2025. Paxton’s office said the settlement incorporates privacy and cybersecurity requirements, including enhanced security standards, comprehensive risk assessments and creation of an independent advisory board, along with enforcement of state privacy laws and continued consumer data deletion rights.

“Companies that collect and profit from Texans’ most personal information have a legal duty to protect it,” Paxton said in a statement.

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The company also agreed to a $46.75 million class-action settlement in the bankruptcy case for affected U.S. consumers who submitted claims by Feb. 17, 2026, Paxton’s office said.

Copyright 2026 by KPRC Click2Houston – All rights reserved.



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Texas Makes Announcement Featuring Arch Manning

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Texas Makes Announcement Featuring Arch Manning


The college football season is approaching quickly, and the Texas Longhorns are one of the most intriguing teams entering 2026.Head coach Steve Sarkisian has assembled a roster loaded with talent. However, quarterback Arch Manning remains the team’s biggest storyline as he enters his fourth season with the program.This will be just Manning’s second year as […] The post Texas Makes Announcement Featuring Arch Manning appeared first on HEAVY.



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