Texas lieutenant governor orders review of regulations on digital assets and prediction markets…added to legislative agenda

YM Lee

Summary

Dan Patrick, Texas lieutenant governor, said he has instructed an interim review during the 2026 legislative session of regulation for digital assets, blockchain, and prediction markets.
Texas said it will examine the operating status of digital-asset kiosks and the consistency of state and federal digital-asset regulation, while also looking into the spread of prediction-market gambling and potential circumvention of gambling prohibitions.
Texas noted that a Bitcoin (BTC) reserve bill passed and was enacted during the 2025 session, describing it as part of advancing the priorities of the state’s conservative majority.

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The Texas lieutenant governor has added a review of regulations governing digital assets (cryptocurrencies) and prediction markets to upcoming legislative work, aiming to examine both potential circumvention of gambling rules and how to respond to changes in financial technology.

According to Cointelegraph on the 31st (local time), Dan Patrick, Texas lieutenant governor and president of the Texas Senate, instructed Senate committees to study digital assets, blockchain, and prediction markets in interim charges delivered ahead of the 2026 legislative session.

Patrick said the interim work is “to advance the priorities of Texas’ conservative majority,” underscoring the need for analysis across digital assets and prediction markets.

On prediction markets in particular, he called for a focus on “cases in which federal law is exploited to bypass prohibitions on gambling—including in elections—and the rapid spread of prediction-market gambling.”

In financial technology, the review will also cover alignment between state and federal regulation of digital assets. The operating status of digital-asset kiosks in Texas is also set to be examined.

Texas is among the U.S. states with strict rules on sports betting and gambling, with most gambling restricted except for tribal casinos and the state lottery. While lawsuits are under way in some states against prediction-market platforms such as Kalshi and Polymarket, Texas has not yet taken direct legal action.

The Texas Legislature meets every two years, and the next session is scheduled to run for 140 days starting in January 2027. During the 2025 session, a Bitcoin (BTC) reserve bill passed and was enacted after being signed by Governor Greg Abbott.

Separately, Patrick also ordered a study on the impact of artificial intelligence (AI) on the labor market and economic competitiveness. This is seen as aligning with recent momentum behind a large-scale data center project in Texas that Google is leasing to Anthropic.