Two bills in the state of Texas have been passed by the legislature with the aim of recognizing crypto assets and blockchain. The bills have been officially accepted and implemented as commercial law that accepts cryptocurrencies and blockchain-related businesses in the state of Texas.
House Bills 4474 and 1576 were dedicated towards the promotion of crypto recognition in the state of Texas, adding it to the list of states that have accepted crypto assets and blockchain technology. Both bills were passed by the chambers in the state legislature in May as proposed amendments, before being signed into law in June by the Governor of Texas Greg Abbot. The commercial law was fully implemented and take into effect on September 1, thus Texas became one of the states that adopted crypto assets and blockchain in the country.
House Bill 1576 is dedicated to establishing blockchain working groups in Texas, and promote the launch of crypto-related businesses, allowing them to operate freely. On the other hand, House Bill 4474 amends the state’s Uniform Commercial Code to recognize crypto assets and blockchain firms in Texas under commercial law.
The Texas commercial law brings positive news for crypto space in the United States. Texas is the fourth state next to Wyoming, Rhode Island, and Nebraska that clarified the status of crypto assets under the commercial law, according to Caitlin Long, a crypto proponent in Wyoming. The law clarifies the legal rights and obligations of parties engaging in crypto transactions while allowing judges to adjudicate disputes in the sector. Crypto lenders would be able to pledge their holdings as collateral for taking loans.
Texas law adopting the commercial law brings more to the state in terms of blockchain innovation and the regulation of crypto assets, as stated by the President of Texas Blockchain Council, Lee Bratcher. He added that the commercial law brings more to Texas alongside the Digital Asset Law in Wyoming. Governor Abbot seems to encourage the idea of crypto mining firms in Texas and had previously proclaimed himself to be the supporter of crypto law, a direct reference to House Bill 4474.
According to Lee Bratcher, 4474 clarifies the security interests for Bitcoin and other crypto assets, allowing institutions to make sizable investments. With the passing of the bill, Bitcoin miners can freely set up shop in Texas following China’s crackdowns.