Appeals court says Texas can enforce drag show ban, suggests not all drag shows violate state law

A federal appeals court has ruled that Texas can enforce a 2023 law that prohibits drag shows in public or when children are present, although the ruling indicates that the judges do not believe all drag shows would be restricted under the measure.

Senate Bill 12 bans drag performers from dancing suggestively or wearing certain prosthetics on public property or in front of children. Business owners could face a $10,000 fine for hosting these performances, and performers who violate the law could be slapped with a Class A misdemeanor.

A three-judge panel in the Fifth U.S. Circuit Court of Appeals on Thursday reversed an earlier decision by a district court, returning the case to the district court, according to The Texas Tribune.

In Thursday's decision, the judges ruled that most of the plaintiffs, which included a drag performer, a drag production company and pride groups, were not found to have planned a "sexually oriented performance," meaning they could not be harmed by the law that seeks to restrict sexually explicit dances, the outlet reported.

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The ruling also suggests that the court does not believe all drag shows are sexually explicit and, therefore, are not impacted by the ban.

In September 2023, U.S. District Judge David Hittner ruled that the law was unconstitutional, writing that it "impermissibly infringes on the First Amendment" and that it is "not unreasonable" to believe it could affect activities such as live theatre or dancing.

Critics of the ban have previously argued that GOP lawmakers were attempting to label all drag shows as sexually explicit, as Republicans continue to target the performances in Texas and several other states.

The court found that performances described by a drag production company are arguably sexually explicit, although the ruling does not specifically state which actions were included.

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"When asked whether the performers 'simulate contact with the buttocks of another person,' the owner testified that the performers sit on customers' laps while wearing thongs and one performer invited a 'handsome' male customer 'to spank her on the butt,'" the ruling said. "When asked whether the performers ‘ever perform gesticulations while wearing prosthetics,’ the owner testified that in 360 Queen’s most recent show, a drag queen ‘wore a breastplate that was very revealing, pulsed her chest in front of people, (and) put her chest in front of people’s faces.'"

Judge Kurt Engelhardt also wrote in a footnote that there is "genuine doubt" that these actions are "actually constitutionally protected —especially in the presence of minors." He was joined by Judge Leslie Southwick, while Judge James Dennis disagreed.

"That gratuitous dictum runs headlong into settled First Amendment jurisprudence and threatens to mislead on remand," Dennis wrote in his partial dissent.

The court also removed most of the defendants from the case before sending it back to the district court to reconsider a part of the measure that centers on the Texas attorney general’s job in enforcing the law.

Texas Attorney General Ken Paxton praised the ruling, saying in a news release that he "will always work to shield our children from exposure to erotic and inappropriate sexually oriented performances."

"It is an honor to have defended this law, ensuring that our state remains safe for families and children, and I look forward to continuing to vigorously defend it on remand before the district court," he said.

The plaintiffs and the ACLU of Texas, which represents the plaintiffs, described the ruling as "heartbreaking," adding that they plan to continue fighting the law.

"We are devastated by this setback, but we are not defeated," they said in a joint statement. "Together, we will keep advocating for a Texas where everyone — including drag artists and LGBTQIA+ people — can live freely, authentically, and without fear. The First Amendment protects all artistic expression, including drag. We will not stop until this unconstitutional law is struck down for good."

Crypto founder pardoned by Trump denies having ties to president's family

The convicted founder of Binance, the world’s largest crypto exchange, said he was "a little bit surprised" by President Donald Trump's pardon of him on "Special Report" Friday.

"We have never met," former Binance CEO Changpeng "CZ" Zhao told "Special Report" anchor Bret Baier in an exclusive interview. "We have never talked." 

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In 2023, Zhao pleaded guilty to a money-laundering–related charge. He served a four-month prison sentence under the Biden administration. President Donald Trump pardoned him Oct. 21, according to the Department of Justice.

White House press secretary Karoline Leavitt touted Trump’s pardon as "officially end[ing] the Biden administration’s war on the cryptocurrency industry."

On Sunday, Trump said in a "60 Minutes" interview he does not know Zhao. 

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The cryptocurrency founder similarly denied having ties to the Trump family, despite The Wall Street Journal attributing Zhao’s pardon to Binance’s alleged "deal" with the Trumps’ cryptocurrency project, World Liberty Financial.

"That’s completely not accurate," Zhao said on "Special Report." "There’s no deal, there has never been any discussions. It's as simple as that."

However, Zhao said he met American Bitcoin co-founder — and Trump's son, Eric Trump — once at the Bitcoin MENA conference in Abu Dhabi. 

Zhao called the WSJ’s reporting "categorically false," denying any business relationships with Trump’s sons. 

He also addressed why he pleaded guilty to a violation of the Bank Secrecy Act, which included failure to properly implement an effective anti-money-laundering program. 

"I think it’s the best way to confront the problem and solve it head-on," he said, later adding: "I do not have anything to debate on the charges." 

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Zhao cited Trump’s GENIUS Act, which defined federal regulations for cryptocurrency, as a marker of the U.S. "leading" in crypto rules.

"The more clarity we have in the industry, the better," Zhao argued. 

 "I think in the last administration, even when I was charged and even when I pleaded guilty, there wasn't any clear regulatory frameworks for crypto in the U.S., so I think now it's getting much clearer, and U.S. is definitely leading," he added.

The Wall Street Journal responded to Zhao’s comments, telling "Special Report," "We stand by our reporting." Both Fox News and The Wall Street Journal are owned by News Corp. 

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