Texas Commercial Law Making Crypto Legal In The State Goes Into Effect
Crypto has been making the rounds in the United States of late. While some states have been against the legalization of cryptocurrencies and blockchain technology, other states have embraced them with open arms.
One of these states is Texas, which had approved two bills that would see cryptocurrency and blockchain technology incorporated into its business legislation. Texas House Bills 1576 and 4474 were approved in May and June by the State legislature and Texas State Governor Abbott. These bills would essentially make cryptocurrencies legal in the state. And the date of implementation was set for the beginning of September.
Laws Go Into Effect
Both state bills cater to different parts of the industry. Texas House Bill 1576 would establish a blockchain working group in the State of Texas. On the other hand, Texas House Bill 4474 would amend Texas’ current Uniform Commercial Code to now include cryptocurrencies under its commercial law. This makes Texas the fourth state to add cryptocurrencies to its commercial law. Behind Wyoming, Rhode Island, and Nebraska.
Talking to Cointelegraph, president of the Texas Blockchain Council, Lee Bratcher, explained that Texas House Bill 4474 would better define the security interests of cryptocurrencies. This would “allow institutional investors to get involved with sizable investments.” House Bill 4474 also includes a definition of what “virtual money” is, which is defined as “a digital representation of value that functions as a medium of exchange, unit of account, and/or store of value, and is frequently secured using blockchain technology” in the Texas Business and Commerce Code.
“This is positive for crypto generally,” said Lee Bratcher. “This means parties to transactions have clarity regarding their legal rights and obligations, judges have a roadmap to adjudicate disputes, and lenders know they have an enforceable lien on the crypto pledged as collateral for collateralized loans.”
Crypto Mining Moving To Texas
Following China’s crackdown on miners, leading to an exodus of miners out of the country, Texas has welcomed mining operations with open arms. The state’s legal protection for businesses has been cited as one of the reasons it is so attractive to crypto miners exiting China. Confident that the events that led to their exit from China would not occur in Texas.
Texas Governor Greg Abbott’s vocal support for cryptocurrencies has also been another one. This has made miners feel welcome, knowing that the leadership of the state was in support of their mining activities.
Another big factor for this move has been energy. China cited energy and pollution concerns as the major reason for the crackdown on miners. As such, crypto miners are looking to set up their operations using more renewable power than they did before. And Texas is perfect for this. The state possesses an abundance of renewable power such as wind and solar, which would provide the miners the power they need to power their rigs. But not causing as much damage to the environment.Source