TEXITcoin founder on Texas mining growth, merge mining and regulatory battle

In an interview with crypto.news, Selva Ozelli speaks with TEXITcoin founder Richard W. Wisher about the Proof-of-Work network, its Texas mining operations and how merge mining allows TXC to be mined alongside Litecoin and Dogecoin.

The discussion also covers regulation and the Texas State Securities Board case against TEXITcoin, MineTXC, Blockchain Mint and Wisher. The founder disputes the regulator’s allegations and argues that mining a Proof-of-Work commodity does not constitute a securities offering.

Tell us about your journey to establishing TEXITcoin (TXC)

I began minting coins in 2008, the same year Satoshi introduced Bitcoin. My goal was to provide money that no government can print. While gold and silver served this purpose for centuries, I wanted to bring that same security to the digital age. In 2012, I even testified before Congress to advocate for these alternative currencies. By 2017, I started laser-etching private keys onto physical coins to bridge the gap between digital assets and tangible wealth. This journey led to TEXITcoin. We built it as a Texas-rooted, Proof-of-Work network with no pre-mine and no special favors for the team. Honest money isn’t a slogan, it’s just money that has to be earned the same way for everybody who touches it, and that is the only kind of money I have ever wanted to build.

Which platforms does TXC trade on?

TXC trades on MEXC, XT.COM, BitMart, and Pionex, with wrapped TXC also available on Ethereum. We’re in discussions with a number of other exchanges right now, so this list is likely to change and grow as new partnerships come together.

Why does Texas rank at the top for crypto mining?

Texas offers a competitive energy market and a massive network of wind and solar power. You will find plenty of land here and a state government that welcomes your business. This environment allows us to build real, physical infrastructure. We mine TXC in the open, using verifiable hardware and actual electricity. Plus, you can power down quickly when the grid is busy, which helps everyone.

Of course, the process is not always easy. Miners face long waits to connect to the grid and unpredictable power prices. You will also deal with transmission limits and more oversight from officials. Despite these hurdles, Texas remains the strongest place to build.

TXC is described as using multi-level marketing to sell mining packages. What are the challenges and growth concerns for crypto mining in Texas?

TEXITcoin is a Layer 1 crypto network, meaning it operates as its own currency, much like Bitcoin. We crowdsourced our mining infrastructure, which fostered a community where people actively participate rather than just watch from the sidelines. If you value collaboration and building real connections, this project is for you. We have created something fundamentally different from traditional network marketing and the scams common in the space.

However, scaling in Texas comes with real challenges. Companies must navigate long grid wait times, volatile power prices, and high startup costs. We also address complex factors like curtailment economics, local noise concerns, and the need for complete transparency when offering products to the public. We are building a sustainable model that accounts for these realities head-on.

How does TXC rank among major crypto-mining companies operating large facilities across Texas?

Comparing TXC to public Bitcoin-mining companies is misleading. We are a Layer 1 network, not a massive mining corporation. We operate on a different scale, so measuring us by megawatts or market cap ignores our true purpose.

We focus on building real infrastructure. We recently invested $5.5 million to expand our mining sites in McKinney, Mansfield, and Conroe. That money bought hardware that performs actual work rather than chasing a leaderboard. I have no interest in claiming a rank that we have not earned. My priority is the growth, security, and utility of the TXC network. That is the only scoreboard that matters.

How do TXC merge mining and energy use work?

TXC uses Scrypt, just like Litecoin and Dogecoin. Because they share the same algorithm, one machine can secure all three networks at the same time. This is called merge mining. It is highly efficient because you do not waste computing power on redundant tasks.

However, it is important to be clear that merge mining does not make mining free. Your machines still consume real electricity. You must manage them carefully to stay profitable. Merge mining simply makes every watt of energy go further rather than make the energy costs disappear.

How is merge mining regulated at state and federal level?

Merge mining does not trigger its own specific set of regulations. Regulators are less worried about the technical labels you use, but instead are focused on your actual activities. You must still follow the rules that apply to any business. This includes things like local environmental permits, electricity market standards, and building codes. If your operations involve financial products or transactions, you must also comply with anti-money laundering, consumer protection, and other applicable laws. Ultimately, authorities judge you by what you do, not by the technology you choose to use.

How is merge mining taxed at federal and state level?

Federal law views mined digital assets as taxable income. You must report their value the moment they become usable. If you sell these assets later, any change in price results in a separate capital gain or loss.

If, like us, you mine as a business, you face additional self-employment or corporate taxes. Texas offers an advantage by having no state income tax, but your business is not exempt from other costs. You must still pay franchise, sales, property, and local taxes. Additionally, the IRS taxes rewards from every network you secure, regardless of your mining efficiency. Because tax laws are complex, please consult a professional regarding your specific business needs.

How could the Texas PUC v. Attorney General public-records case affect the mining industry?

This legal case is not about mining regulations. It is about whether the state must release private data on facility locations and power use. People often confuse these two issues, but they are separate.

If the court chooses confidentiality, it protects mining companies from security risks. This is the position held by the Public Utility Commission. However, if the court mandates disclosure, the public gains vital clarity about the demands these companies place on the Texas power grid.

It is important to note that this case does not excuse companies from complying with the rules. They must still report their data to regulators. The core disagreement is simply about who has the right to see that data. This decision is one small part of a larger debate about how Texas manages its energy grid and the public’s right to know how its power is being used.

How did the Texas Blockchain Council/EIA survey case affect the mining industry?

The 2024 EIA case demonstrates that agencies must follow the law when collecting data. The agency tried to force Bitcoin miners to complete an emergency survey without using the standard notice and comment process. A federal court stopped them with a restraining order, ultimately forcing the EIA to delete the data they had already collected.

That’s the real lesson here, government agencies cannot bypass rules to demand private information. They must follow the Paperwork Reduction Act and allow for public feedback. This decision does not mean the EIA cannot request energy data in the future. It also does not excuse miners from standard reporting requirements. Instead, it ensures that agencies follow the law instead of taking shortcuts.

TXC is a fork of Litecoin, which is a fork of Bitcoin. How does that affect TXC’s classification under Texas securities law and the SEC/CFTC interpretation issued March 17, 2026?

This is the regulatory clarity we have been waiting for. On March 17, the SEC and CFTC officially classified Litecoin as a commodity. TXC uses the exact same Proof-of-Work structure, issuance logic, and mechanics as Litecoin. The only difference is that TXC is built and mined in Texas. 

Regulators have now confirmed that protocol mining does not turn an asset into a security. Miners contribute their own computing power, which is an administrative task rather than reliance on someone else’s management. Because TXC is a permissionless network built on this established foundation, its status as a commodity is clear. Our structure matches the model that regulators just validated, proving that TXC is a commodity from the ground up.

Tell us about the TSSB case, your counterarguments and its possible industry impact.

In February 2026, the Texas State Securities Board issued an order against TEXITcoin, MineTXC, Blockchain Mint, and me. They allege that we offered unregistered investments and made misleading statements. It is important to remember that these are unproven allegations, not facts determined by a hearing.

We retained Quinn Emanuel to represent us. We have requested a formal hearing to present our defense through the proper legal channels instead of the press.

Our position remains that we believe mining a Proof-of-Work commodity is not a security. Furthermore, our mining activity and equipment are real and fully verifiable. We look forward to proving this during the legal process. Because this case is ongoing, I will not speculate on the outcome or its impact on the industry. I prefer to let the facts of the legal record speak for themselves.

Can state regulators act independently even where a token is not treated as a security federally?

States do have their own security laws and regulators. Federal rules do not automatically replace them. However, these systems are deeply connected. Texas uses the same “Howey test” as the SEC and CFTC to define a security. When federal regulators decide an asset is not a security, that logic remains relevant at the state level. It does not simply disappear at the state border.

States should certainly protect consumers and stop fraud under their own authority. But that is different from labeling a legitimate Proof-of-Work asset a “security” just because it crossed a state line.

What are your views on the CLARITY Act and promises of daily passive mining returns?

The CLARITY Act is essential for fixing market structure. It draws clear lines between the SEC and the CFTC so builders know exactly which regulator oversees their work. This transparency rewards those who follow the rules. 

In regard to the timeline, the process remains lengthy. We face a cloture vote on September 15, which requires 60 votes just to begin debate. After that, we have to navigate floor debates, amendments, and a final vote. Anyone suggesting this bill is already law is jumping to conclusions. I prefer to be honest about our progress rather than promise a result that is not yet guaranteed.

Anything else you would like to add?

Just that I’m excited for what’s ahead. We’re building real momentum right now, we’re investing in expanding our mining network, we’re pushing crypto payment adoption forward across Texas, and every day we get to bring the idea of honest money to more people who’ve never really had it explained to them properly before. That’s the work, and I’m genuinely excited to keep doing it.

How can people reach you?

You can visit our website at Texitcoin.org and keep up to date with everything we’re doing on X https://x.com/TEXITcoin.

About the Author:
Selva Ozelli Esq, CPA, is an international digital asset legal expert and author of Sustainably Investing in Digital Assets Globally and an award winning artist.  Her writings are translated into 45 languages and republished in over 200 global publications.  She is recognized as an expert media/TV commentator on global AI,  digital asset regulation, tax, and technology matters.