In an August 18 press release, Paxton accused both of presenting themselves as mental health tools without proper qualifications. He argued that artificial intelligence (AI) platforms can give the false impression of offering real therapy.

He said this puts children at risk of relying on chatbots for help instead of licensed professionals. According to his office, the companies created personas that appear as trusted advisers despite lacking medical oversight or credentials.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

What is Basic Attention Token (BAT)? Brave Browser EASILY Explained

Character.AI has millions of user-created personas. One of them, called “Psychologist”, is especially popular with young users. Meta does not promote therapy-specific bots for children, but its general AI assistant and third-party personas can still be used for emotional advice.

Still, Paxton pointed to privacy and data concerns. He said chatbots often promise confidentiality, but their terms of service reveal otherwise. According to him, conversations are stored, tracked, and used to develop algorithms or deliver advertising.

Meta’s privacy policy confirms that it collects prompts, feedback, and other interactions to improve AI. The company also shares some data with third parties, including search engines, to provide more personalized outputs.

Meanwhile, Character.AI’s shows that the company logs details such as demographics, device identifiers, location, browsing history, and app activity. It also tracks users across major platforms like TikTok, YouTube, Reddit, Instagram, and Discord.

Recently, Illinois approved new rules that stop licensed therapists from using AI chatbots to help with mental health treatment. What do the rules include? Read the full story.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Texas has just become the first US state to create a publicly funded Bitcoin reserve, thanks to Governor Greg Abbot signing the Senate Bill 21 this weekend.

The ultimate aim of the ‘Texas Strategic Bitcoin Reserve’ is to strengthen the state’s financial resilience and serve as a hedge against inflation.

Not only is this news bullish for $BTC but also for Bitcoin-native infrastructure. As more states consider holding the #1 crypto, the need for fast, scalable tools is bound to skyrocket.

This is where Bitcoin Layer-2 solutions like Bitcoin Hyper ($HYPER) shine bright. They power real-world $BTC adoption with lightning-fast throughput, lower fees, and smart contract capabilities.

Texas Launches State-Independent $10M Bitcoin Reserve

States like New Hampshire and Arizona passed similar laws. However, Texas has taken one step further, funding the Texas Strategic Bitcoin Reserve with a hefty $10M allocation.

This new initiative stands stands out from traditional state-owned reserves by operating independently. Only the Texas Comptroller’s office and a three-member crypto investment advisory board will manage it.

To protect the new bill, Abbott signed House Bill 4488 on June 21, preventing routine ‘fund sweeps’ from transferring reserve funds into the state’s general budget. Specifically, it highlights Texas’ intent to HODL $BTC.

It’s not just about purchasing $BTC from the open market, either. The reserve could grow through airdrops, network forks, investment gains, or public crypto donations.

To track its performance, the government will release a comprehensive report detailing the fund’s holdings every two years.

But as more governments and institutions adopt $BTC, on-chain congestion is bound to increase, which puts the entire industry at risk.

Thankfully, Bitcoin Hyper (HYPER) is getting ready to deliver the speed and scalability necessary to power the next wave of Bitcoin utility.

Bitcoin Hyper to Help Solve $BTC’s Growing Pains

Bitcoin Hyper ($HYPER) is positioning itself as the Layer-2 upgrade Bitcoin has long needed, and will likely need now more than ever before.

The network, set to go live in Q3 2024, will feature wrapped $BTC and full integration with the Solana Virtual Machine (SVM). This will help it facilitate speedy swaps, batch transactions, and low fees – even during periods of peak usage.

A smart canonical token bridge will continuously sync Bitcoin Hyper with Bitcoin’s Layer 1. This will ensure that every action on the Layer 2 network remains secure, transparent, and verifiable. Check out our guide for a deeper dive into $HYPER’s inner workings.

In Q4 2025, you can also anticipate the release of the Bitcoin Hyper Developer Toolkit. This will let developers build everything from lending platforms to Web3 games, while remaining anchored to Bitcoin’s mainnet for extra security.

With 30% of the total $HYPER supply earmarked for ongoing developments, you can anticipate regular updates and innovation as the ecosystem matures.

It’s not surprising that whale buyers already notice the project’s long-term potential, three of whom have invested $74.9K, $54.1K, and $53.9K into $HYPER.

Each of these buys has helped it raise over $1.5M on presale in no time.

Join $HYPER to Potentially Gain 2,567% Returns

Texas isn’t just holding Bitcoin but setting a new standard. By funding a $10M $BTC reserve and protecting it from budget sweeps, the state bets big on the crypto leader’s future as a strategic asset.

Not only is this move bullish, but it’s also a turning point for $BTC adoption. It highlights the urgent need for rapid and scalable infrastructure.

Thankfully, Bitcoin Hyper is being built for the demands of tomorrow’s economy, supercharging the Bitcoin network with faster speeds, lower costs, and seamless scalability.

You can get in on the action by purchasing $HYPER on presale for just $0.012. After being listed on major exchanges, it’s projected to reach $0.32 this year – a possible 2,567% gain compared to its current price.

This isn’t investment advice. Always do your due diligence before making any investments – crypto prices can tumble as quickly as they jump.

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Texas is now legally empowered to build its own Bitcoin reserve funded with taxpayer dollars before the federal government takes any comparable action.

Governor Greg Abbott on Saturday signed Senate Bill 21, a law that explicitly allows the state to buy and hold Bitcoin and other top-tier cryptocurrencies.

The measure passed the Texas House and Senate by wide margins, empowering the state comptroller to begin building the reserve immediately.

While the Trump administration recently announced the formation of a “Strategic Bitcoin Reserve,” the two policies differ starkly in substance and intent.

Strategic autonomy or symbolic move?

Backers of the Texas bill, including Lieutenant Governor Dan Patrick and State Senator Charles Schwertner, frame it as a hedge against inflation and a way to cement Texas’s identity as a national leader in crypto.

“Bitcoin’s decentralized nature and fixed supply make it an ideal store of value for the long term,” Schwertner said during debate on the floor. Proponents also point to Bitcoin’s ten-year performance record and growing institutional adoption as reasons to allocate a small but symbolic slice of the state’s rainy day funds.

The Comptroller’s office will hold and manage the Texas reserve, with input from a five-member advisory board. Funding for the reserve can come from legislative appropriations, investment earnings, and private donations.

Critically, the law gives the state authority to actively buy and manage Bitcoin, including holding it as an asset and potentially disposing it strategically.

Some proponents argue that future returns could be generated through yield-bearing mechanisms such as staking or lending, though the bill itself does not explicitly authorize those functions.

Federal effort is more constrained.

The Trump administration’s executive order creating a federal “Strategic Bitcoin Reserve” sparks comparisons, but the two initiatives have little in common beyond the name.

The Federal Bitcoin Reserve is built entirely from Bitcoin seized in criminal investigations. Under the terms of the March 6 executive order, these assets are now off-limits for liquidation but cannot be expanded unless the purchases are “budget-neutral.” That means the federal government will not be buying new Bitcoin anytime soon; it is simply freezing what it has already seized.

Unlike Texas, the Federal Bitcoin Reserve does not have an independent advisory board or a mandate to generate returns on its holdings. Custody remains with the Treasury Department and U.S. Marshals Service, and oversight remains largely internal.

How much Bitcoin could Texas buy?

With its Economic Stabilization Fund, commonly known as the “Rainy Day Fund,” projected to hold between $24 billion and $28.5 billion in 2025, Texas could feasibly allocate hundreds of millions to Bitcoin purchases without putting its fiscal position at risk.

At current market prices, a 1% allocation (roughly $240-$285 million) could net the state around 2,400 to 2,800 BTC. A more aggressive 5% allocation would bring in up to 14,000 coins, making Texas one of the largest sovereign holders of Bitcoin globally.

For comparison, the federal government currently holds approximately 218,000 BTC, based on recent blockchain analytics, though all of it came from seizures rather than purchases.

What happens next

With SB 21 now law, the Texas Comptroller’s office is expected to outline implementation procedures by the end of the fiscal year. Meanwhile, companion legislation (HB 4488) will protect the reserve from being swept into the state treasury for unrelated uses.

As Washington and Austin pursue divergent paths on handling Bitcoin, Texas may now become the first U.S. state to hold the cryptocurrency not because it had to, but because it chose to.

Mentioned in this article

On Saturday, Texas became the first-ever US state to commit public funds towards the purchase of Bitcoin.

Governor Greg Abbott signed Senate Bill 21 (SB21), officially authorizing the establishment of the Texas Strategic Bitcoin Reserve.

Keep reading to learn more about this development, increasing investor and government confidence in Bitcoin’s long-term potential, and what’s the best crypto to buy now in order to ride the upcoming crypto wave.

Texas Passes Groundbreaking Bitcoin Reserve Bill

‘We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years.’

This is what the Texas Bitcoin bill’s author, State Senator Charles Schwertner, said in February.

Four months later, Texas has put its faith in the ‘digital gold’ to strengthen its financials and act as an effective hedge against inflation.

It’s worth noting that although Texas is the third US state to create a Bitcoin reserve (after Arizona and New Hampshire), it’s the first to create a publicly-funded reserve.

Neither of the other two has allocated public funds for the purchase of Bitcoin.

By putting actual taxpayer dollars into $BTC, Texas has not only officially recognized Bitcoin as a store of value but also signaled its unwavering trust and long-term commitment to the digital asset.

A publicly-funded reserve is also likely to increase demand for Bitcoin. It’s also worth mentioning that large public companies like Michael Saylor’s Strategy have aggressively bought Bitcoin over the past few months.

With here are some of the best new cryptos you can buy to benefit from Bitcoin’s growing acceptance among corporations and government agencies.

1. BTC Bull Token ($BTCBULL) – Best Crypto to Buy Now, Get Free $BTC Airdrops

BTC Bull Token ($BTCBULL) is the best crypto to invest in if you want to eke out the maximum amount of returns possible from Bitcoin’s bull run.

$BTCBULL’s biggest selling point is that it’s the ONLY crypto on the market right now, offering free (and completely legit) $BTC to its token holders.

If you’re a $BTCBULL holder who has stored his tokens in Best Wallet, you’ll receive your share of free $BTC (depending on your $BTCBULL holdings) every time the king cryptocurrency reaches a landmark, such as $150K and $200K, for the first time.

Thanks to its never-before-seen approach to rallying behind Bitcoin and community rewards, BTC Bull Token is predicted to explode 270% and reach $0.0096 by 2026.

A huge reason behind this is the project’s deflationary model, which will burn a part of the total $BTCBULL token supply at regular intervals, creating a supply shortage and hiking prices.

The best part? $BTCBULL is currently in presale, where it has raised over $7.2M. Each token is priced at $0.002575, and here’s how to buy it.

2. Bitcoin Hyper ($HYPER) – Building Layer 2 on Bitcoin for Scalability & Fast Transactions

Despite being the OG blockchain, Bitcoin has been struggling with slow transaction speeds and high fees, as well as limited compatibility with decentralized applications and Web3. Enter Bitcoin Hyper ($HYPER).

By building a Bitcoin Layer 2 and connecting it to the Layer 1 using a Canonical Bridge and Solana Virtual Machine (SVM) integration, Bitcoin Hyper aims to bring programmability and scalability to the Bitcoin ecosystem.

Plus, it will do so without impacting the network’s security and decentralization benefits.

Luckily for you, one $HYPER is currently available for just $0.011975 (the token could soar 2,000% by 2030), and the project has in total raised over $1.5M. Here’s how to buy it.

3. Tutorial ($TUT) – Educating Folks About Everything Crypto

Tutorial ($TUT) has been one of the biggest beneficiaries of crypto’s growth and increasing awareness among the masses.

That’s because it’s an AI-powered tool that educates people about different crypto-related topics and tools, including setting up a crypto wallet.

Other ‘tutorials’ in its repertoire include teaching people how to write smart contracts, trade on the best decentralized exchanges, and learn everything there is to know about the BNB chain ecosystem.

$TUT has been on a sensational run of late, gaining more than 25% over just the past 7 days. It’s currently trading at $0.03583, offering a discounted entry point before it explodes to mimic crypto’s rise.

As States Back $BTC, Altcoins Emerge as Attractive Investments

With regulated, state-backed crypto holdings becoming increasingly mainstream, we’re clearly headed towards a world where diversified crypto assets (the best altcoins included) are looked at as both stores of value and investment opportunities.

However, make sure you do your own research and due diligence before investing in crypto. The market is highly uncertain, and our article isn’t financial advice.