The Impacts of Legislation on the Financial Industry in Texas

Texas's financial landscape has evolved alongside proactive legislative leadership. Lawmakers have consistently prioritized economic growth, regulatory clarity and competitive market structures. The Legislature continues to advance reforms that support both traditional financial institutions and emerging sectors, ensuring Texas remains a hub for investment and innovation.

Capital Markets Reform

Recent legislation has redefined the state's approach to capital markets:

• Senate Bill 1057 establishes higher thresholds for shareholder proposals in nationally listed corporations, requiring ownership of at least $1 million or 3% of voting shares, a six-month holding period, and solicitation of 67% of voting power. This opt-in framework applies to an entity that is listed on a national securities exchange and either has its principal office in Texas, or is also listed on a stock exchange whose principal office is located in Texas.

• Senate Bill 1058 exempts "transaction rebate payments" from franchise tax calculations for registered securities market operators, reducing tax burdens and encouraging exchange operations in Texas.

• Senate Bill 29 codifies the Business Judgment Rule, offering directors and officers legal protections for decisions made in good faith. Its passage will make Texas more competitive with other states for corporate incorporation and governance.

• Senate Bill 1239 clarifies choice of law and expands the rights of purchasers of securities issued by foreign states, ensuring claims and demands transfer with the security and reinforcing Texas’s attractiveness for sovereign debt litigation.

• The legislature adopted House Joint Resolution 4 to prohibit occupation taxes on securities market operators and taxes on securities transactions. Texas voters approved this ballot proposal, further solidifying Texas’s tax-friendly stance for capital markets.

Together, these bills enhance corporate governance, reduce litigation risk and attract public listings to Texas.

Texas Stock Exchange

The Texas Stock Exchange (TXSE), headquartered in Dallas, received SEC approval in September 2025 to operate as a national securities exchange. Supported by major financial institutions, TXSE underscores Texas’s growing role in the national financial markets with continued growth through the opening of a Nasdaq regional headquarter and NYSE Texas as well. With stringent listing standards and a focus on mid- and large-cap issuers, TXSE is poised to serve the Southeast’s booming economy and population.

Crypto & Digital Assets

Senate Bill 21, the Texas Strategic Bitcoin Reserve and Investment Act, authorizes the state to hold Bitcoin and other high-cap digital assets. Managed by the Comptroller, the reserve aims to hedge against inflation and promote financial resilience. The law includes safeguards like market cap thresholds and third-party custodianship, positioning Texas as a pioneer in state-level crypto adoption.

Conclusion

Texas’s recent legislative efforts underscore its ambition to lead in financial innovation, corporate governance, and digital asset integration. By fostering a business-friendly environment and embracing emerging technologies, the state continues to shape the future of finance—both locally and nationally.