Cryptocurrencies received official recognition in Texas after the passage of two bills aimed at developing the cryptocurrency and blockchain industry. Both bills, numbered H.B. 4474 and H.B. 1576 officially took effect on September 1 after they were passed by both houses of the state legislature in May.
The documents were signed by Gov. Greg Abbott in June. Bill 4474, introduced in March by Rep. Tan Parker, seeks to define cryptocurrencies in the state’s Uniform Commercial Code.
Bill 4474 defines a security interest for bitcoin and other cryptocurrencies and allows institutional investors to participate in large investments in digital assets, according to Texas Blockchain Council President Lee Bratcher. Bill 1576 establishes a blockchain working group in
Texas for the adoption of commercial law regarding innovations in the blockchain and
regulation of digital assets. Now that the bills have come into force, there is legal clarity in the state to define cryptocurrencies. The laws will provide a set of guidelines for Texas companies that want to get into the cryptocurrency business. Texas banks have already received approval from the Texas Department of Banking to provide custody services for virtual currencies.
Texas’ crypto-friendly approach comes as no surprise as Gov. Abbott is a cryptocurrency proponent. It is assumed that he stimulated the work of mining companies in Texas. Due to China’s crackdown on crypto mining, Texas has become home to crypto mining companies like BlockCap and Riot Blockchain.
Both companies plan to expand their mining capacity in the state through the acquisition of new equipment. Texas has become another US state after Wyoming and Nebraska to recognize blockchain and cryptocurrency. Wyoming became the first cryptocurrency-friendly state by adopting on February 26, 2019