Cryptocurrencies have officially become recognized in Texas following the passing of two bills to push the crypto and blockchain industry. The two bills tagged H.B. 4474 and H.B. 1576 officially took effect on the first of September after being passed by both chambers in the state legislature in May. The bills were signed into law by Governor Greg Abbott in June.
The bill aims to define cryptocurrencies in the state’s Uniform Commercial Code or UCC.
Earlier in March, Bill 4474, which Representative Tan Parker introduced, aims to define cryptocurrencies in the state’s Uniform Commercial Code or UCC. According to President of the Texas Blockchain Council, Lee Bratcher, Bill 4474 defines the security interests for Bitcoin and other cryptocurrencies and enables institutional investors to get involved with sizable investments. On the other hand, bill 1576 establishes a blockchain working group in Texas to adopt commercial law to blockchain innovation and cryptocurrencies regulations. With the bills now in effect, there is legal clarity in the U.S. state of Texas that defines cryptocurrencies.
The laws would come with a series of guidelines for Texas companies.
The cryptocurrency laws would come with a series of guidelines for Texas companies who want to participate in the cryptocurrency business. State-chartered banks in Texas have already been given the go-ahead by the Texas Department of Banking to provide custody or safekeeping services for virtual currencies. Texas’ crypto-friendly nature comes as no surprise as Governor Abbott is a pro-crypto supporter. He also reportedly encouraged crypto mining firms to operate in Texas. Due to China’s recent crackdown on crypto mining, Texas is now home to crypto mining firms like BlockCap and Riot Blockchain.