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In a state long known for its business-friendly policies and pioneering spirit, the Texas Legislature has taken a decisive step into the digital future. During the recently concluded 89th Legislative Session, lawmakers passed a series of ambitious bills aimed at regulating artificial intelligence, bolstering cybersecurity infrastructure, protecting minors online, and even establishing a state-backed Bitcoin reserve.
In an early signal of Texas’ tech-focused agenda, Governor Greg Abbott surprised many during his State of the State address in February by designating the formation of a Texas Cyber Command as one of his top emergency priorities. The result was House Bill 150, spearheaded by Rep. Giovanni Capriglione (R-Southlake), which creates a new state agency dedicated to protecting Texas from digital threats.
Cybersecurity Gets a Home Base
The Texas Cyber Command, as outlined in HB 150, will absorb the cybersecurity functions currently housed in the Department of Information Resources (DIR). However, its role will expand well beyond oversight. The new agency will be empowered to handle digital forensics, critical infrastructure protection, incident response, and education and workforce development in cybersecurity fields.
“Its ultimate mission is to prevent and protect against cyber breaches,” said Abbott during the bill’s signing. “Working together with the Texas Cyber Command, Texas will be on the path to be a national leader in cybersecurity.”
Artificial Intelligence with Guardrails
Another major initiative championed by Rep. Capriglione was the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). Initially introduced as HB 1709 and later refined into HB 149, the legislation aims to walk a fine line between regulation and innovation.
TRAIGA establishes a regulatory sandbox that will allow AI developers to test emerging technologies in a controlled environment while complying with ethical standards. It also creates the Texas Artificial Intelligence Council, tasked with ensuring that AI systems developed or deployed in Texas are “ethical and developed in the public’s best interest.”
“This landmark legislation establishes the nation’s most robust, outcomes-based AI regulatory framework,” Capriglione said. “Together, we’re building a future where AI serves the public good.”
States vs. Feds on AI
The state-level action comes at a time when the federal government is taking a markedly different approach. Under former President Donald Trump’s proposed “One, Big, Beautiful Bill,” states would be barred from enforcing any laws regulating AI for ten years after the act’s enactment. The measure, while still in early stages, has drawn sharp contrasts between federal and state visions for tech governance.
Youth Tech Protections Advance
In addition to AI and cybersecurity, the Legislature also turned its attention to how technology affects young Texans. With the passage of Senate Bill 2420, app stores will soon face stricter requirements when it comes to minors. Effective January 1, 2026, platforms will be required to implement age verification, parental consent, content rating systems, and limits on data collection for users under 18.
The law aims to protect children from making unauthorized purchases and being exposed to harmful content—concerns that have grown alongside youth social media use and mobile gaming.
Rep. Jared Patterson (R-Frisco) went further with a proposal to ban minors from using social media platforms entirely. Although his bill gained attention, it ultimately stalled in the Senate. “The biggest disappointment of my career,” Patterson said after it failed to advance.
Bitcoin in the State’s Balance Sheet
Texas also made headlines in the crypto world with SB 21, which creates the Texas Strategic Bitcoin Reserve. The fund—operating outside the traditional state treasury—will be managed by the Texas Comptroller and can receive digital currency through legislative appropriations, investments, or private donations. Regular reports on the fund’s status will be made public every two years.
While critics question the volatility of such a reserve, supporters argue that it positions Texas at the forefront of financial innovation.
A New Digital Era for Texas
With the close of the 89th Legislative Session, Texas has set the groundwork for a statewide tech policy that blends proactive regulation, market flexibility, and long-term digital resilience. These new laws won’t just affect startups and tech giants—they’re poised to change how every Texan interacts with the digital world, from browsing apps to trusting AI-driven services.
As implementation begins and regulations are fine-tuned, one thing is clear: Texas isn’t waiting on Washington to shape the digital future—it’s building its own.
Key Measures Passed This Session:
HB 150: Establishes Texas Cyber Command
HB 149 (TRAIGA): Creates AI regulatory sandbox and oversight council
SB 2420: Regulates app stores to protect minors
SB 21: Forms the Texas Strategic Bitcoin Reserve
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