Robert J. Gray, founder of TEXITcoin, discusses the project’s Texas-rooted Proof-of-Work network, how merge mining alongside Litecoin and Dogecoin works…
Robert J. Gray, founder of TEXITcoin, discusses the project's Texas-rooted Proof-of-Work network, how merge mining alongside Litecoin and Dogecoin works in practice, and the ongoing regulatory dispute with the Texas State Securities Board.
Summary
- TEXITcoin operates a Texas-based Proof-of-Work network using Scrypt, the same algorithm as Litecoin and Dogecoin, which allows all three to be mined simultaneously.
- The project has deployed $5.5 million to expand mining sites across McKinney, Mansfield, and Conroe in Texas.
- TEXITcoin is contesting a Texas State Securities Board order that alleges unregistered investment offerings and misleading statements.
- Gray argues that mining a Proof-of-Work commodity does not constitute a securities offering under either federal or Texas legal standards.
Tell us about your journey to founding TEXITcoin.
I started minting coins in 2008, the same year the Bitcoin whitepaper appeared. My goal was to create money that no government could inflate away. Gold and silver served that function for centuries. I wanted to bring the same property into the digital world.
By 2012 I had testified before Congress on the topic of alternative currencies. By 2017 I was laser-etching private keys onto physical coins to bridge digital assets and tangible wealth. TEXITcoin followed from that progression.
We built it as a Texas-rooted, Proof-of-Work network with no pre-mine and no preferential allocations to the founding team. Honest money is not a slogan. It is money that must be earned the same way by everyone who touches it. That is the only kind of money I have ever wanted to build.
Why does Texas rank at the top for crypto mining?
Texas offers a competitive energy market, a large network of wind and solar power, available land, and a state government that welcomes business investment. That environment supports real physical infrastructure. We mine TXC openly, using verifiable hardware and actual electricity. Miners can also curtail operations quickly when grid demand peaks, which benefits the broader electricity system.
The challenges are real too. Grid connection wait times are long. Power prices are unpredictable. Transmission constraints exist, and regulatory oversight is increasing. Despite those friction points, Texas remains the strongest environment in the country for mining infrastructure.
How does merge mining with Litecoin and Dogecoin work?
TXC uses Scrypt, the same hashing algorithm as Litecoin and Dogecoin. Because all three share the same algorithm, a single mining machine can secure all three networks simultaneously. The miner does not divide its computing power. It applies the full output to each network in parallel.
The practical effect is that miners earn rewards across multiple chains without additional hardware cost. For TXC, merge mining means the network inherits a share of the security contributed by Litecoin and Dogecoin miners who opt into the arrangement.
How does TXC's legal classification hold up after the March 2026 SEC and CFTC guidance?
The March 2026 guidance formally classified Litecoin as a commodity. TXC uses the identical Proof-of-Work structure, issuance logic, and network mechanics as Litecoin. The difference is geographic: TXC is built and mined in Texas.
Regulators have now confirmed that protocol mining does not convert an asset into a security. Miners contribute their own computing resources, which is an administrative function, not reliance on another party's management efforts. Because TXC is a permissionless network built on that established foundation, its status as a commodity follows directly from the precedent regulators just validated.
Tell us about the Texas State Securities Board case.
In February 2026, the Texas State Securities Board issued an order against TEXITcoin, MineTXC, Blockchain Mint, and myself. The allegations include offering unregistered investments and making misleading statements. These remain unproven allegations, not findings from a formal hearing.
We retained Quinn Emanuel and have requested a formal hearing to present our defense through proper legal channels.
Our position is that mining a Proof-of-Work commodity is not a securities offering. Our mining infrastructure and equipment are real and fully verifiable. We intend to demonstrate that during the legal process.
What is your view on the CLARITY Act and its current status?
The CLARITY Act is necessary for fixing the regulatory structure in digital assets. It draws clear jurisdictional lines between the SEC and the CFTC so that builders know in advance which agency governs their work. Clarity of that kind rewards builders who follow the rules.
The legislative process remains extended. A cloture vote requires 60 votes just to begin floor debate, after which amendments and a final vote follow. Anyone suggesting the bill is already resolved is moving ahead of the facts. I prefer to be accurate about where the process stands rather than promise outcomes that have not materialized.
What is TEXITcoin working toward over the next year?
We are expanding our mining network, advancing crypto payment adoption across Texas, and continuing to develop the infrastructure and community that makes TXC a functioning monetary network. The goal has not changed from the beginning: honest money that anyone can earn the same way.
TEXITcoin can be reached at Texitcoin.org.
This interview has been edited for length and clarity. The views expressed are those of the interview subject and do not constitute investment advice.
