The Texas commercial law that made crypto legal in teh state goes into effect while some have been against the legalization of crypto and blockchain technologies, so let’s read more in our latest crypto news today.
One of these states is Texas that approved two bills that will see crypto and blockchain technology incorporated into the business legislation. The Texas House Bills 1576 and 4474 were approved in May and June by the Texas State Legislature and Governor Abbott. The bills will make cryptos legal in the state and the date of implementation is set for September.
Both state bills cater to different parts of the industry as the Texas House Bill 1576 will establish a blockchain working group in the State of Texas while on the other hand, the other bill will amend Texas’ current Uniform Commercial Code to include crypto under its commercial law. This makes Texas the fourth state to add crypto to its commercial law behind Nebraska, Rhode Island and Wyoming. President of the Texas Blockchain Council Lee Bratcher explained that the 4474 bills will better define the security interests of crypto which will allow the institutional investors to get involved with sizeable investments. House bill 4474 includes a definition of what virtual money is and was defined as a digital representation of value that functions as a medium of exchange, store of value, or unit of account secured by using the blockchain technology in the Texas Business and Commerce Code. Bratcher said:
“This is positive for crypto generally. 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.”
The Texas commercial law will make the job much easier for crypto businesses in the state. However, following China’s crackdown on miners, Texas welcomed mining operations with open arms, and the state’s legal protection for the crypto businesses was cited as one of the reasons that it is so attractive to miners exiting China. The legislators were confident that the events which led to the exit from China, will not happen in Texas. Texas Governor Greg Abbott’s vocal support for cryptos has been another one and this has made the miners feel welcomed knowing that the leadership in the state supports the mining activities. Another major factor for this has been energy. China cited energy and pollution concerns as the major reason for the miners and as such, the miners were looking to set up their operations by using more renewable power than they did in the past. And Texas is a perfect choice for this.