Texas House Bills 4474 and 1576 went into effect on September 1 after Governor Greg Abbott signed them into law in June. Texas has passed two legislation aimed at increasing the adoption of cryptocurrencies and blockchain.
Texas House Bills 4474 and 1576, which were passed by both chambers of the state legislature in May and signed into law by Governor Greg Abbott in June, went into effect on September 1. H.B. 1576 creates a blockchain working group in Texas, while H.B. 4474 modifies the state’s Uniform Business Code to recognise cryptocurrencies as commercial property.
The security interests for Bitcoin (BTC) and other cryptocurrencies are defined by tter to “enable institutional investors to become engaged with significant investments.” He went on to say that the Texas Banking Commissioner and the Texas Department of Banking declared in June that banks with a state franchise can hold cryptocurrency under certain conditions.
“This is good for crypto in general because Texas is the fourth U.S. state, after Wyoming, Rhode Island, and Nebraska, to clarify the commercial law position of digital assets,” Wyoming-based crypto advocate Caitlin Long told Cointelegraph. “This implies that parties to transactions have clarity about their legal rights and duties, judges have a path for resolving disputes, and lenders know they have an enforceable lien on the cryptocurrency pledged as collateral for collateralized loans.”
In March, the head of the Texas Blockchain Council told Cointelegraph that Texas adapting commercial law to blockchain innovation and digital asset legislation might bring the state closer to Wyoming, which has a Digital Asset Law that went into force in July 2019. Governor Abbott has previously labelled himself as a “crypto legislation proposal supporter,” referring specifically to H.B. 4474, and appeared to urge crypto mining corporations to operate in Texas.
Following China’s crackdown on several crypto mining businesses, some BTC miners have relocated to Texas, which is home to BlockCap, Riot Blockchain, and others. In addition, H-E-B, a big supermarket chain, stated in June that it will deploy cryptocurrency ATMs in its Texas locations.