On January 4th an Emergency Cease and Desist Order was issued by The Texas Securities Commissioner to the England-based cryptocurrency trader BitConnect. The Order was entered against the company in connection with the sale of unlicensed securities. The Texas State Securities Board Rules and Regulations, and the Texas Securities Act, require all securities to be registered for sale in the State of Texas, which the company had failed to do.

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Texas is the first American state to issue any administrative order relating to cryptocurrency investments, with another Cease and Desist issued on December 20th against a company based in Dubai. Texas authorities are concerned that BitConnect are promoting online sales through agents who are not licensed to sell securities. 

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BitConnect's website describes the project as "an open source all in one bitcoin and crypto community platform designed to provide multiple investment opportunities" and has its own native digital currency, BitConnect Coins. 9.4m of these coins are being launched in a January 9th ICO, at a market value on January 3rd of $4.1bn. 

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Since BitConnect is an English-based company, this Order has no direct effect on its trading, although it can prohibit any dealing with residents of Texas. It does, however, influence the regulatory arguments, in that cryptocurrency rulings by smaller governing bodies may have to be negotiated by traders, independent of any national government decision-making.