Texas, the second-largest state in the US, passed the Texas House Bills 4474 and 1576 by both chambers in the state legislature in May.
After being signed into law by Governor Greg Abbott in June, both bills officially took effect on Sept. 1 in the strategy to accelerate the adoption of cryptocurrencies and blockchain in the state.
Become The 4th US State to Recognize Cryptocurrencies and Blockchain
While H.B. 1576 launches a blockchain group working in Texas, H.B. 4474, which better defines the security interests for Bitcoin (BTC) and other cryptocurrencies, amends the state’s Uniform Commercial Code to recognize cryptocurrencies under commercial law.
Caitlin Long, a Wyoming-based crypto proponent said,
“This is positive for crypto generally because Texas became the 4th U.S. state, behind Wyoming, Rhode Island, and Nebraska, to clarify the commercial law status of these assets. 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.”
In March, Lee Bratcher, president of the Texas Blockchain Council, said that the state was adopting commercial law on digital asset regulations and blockchain innovation to bring the state more in line with Wyoming, which effected a Digital Asset Law in July 2019.
Texas Welcomes Bitcoin Miners After China’s Crackdown on Crypto Mining
Texas is attracting Bitcoin miners that have recently moved to the region. When China is cracking down on many crypto mining operations, a number of Bitcoin mining companies have set up shops in Texas to conduct business.
Texas is considered the very good location for Bitcoin mining thanks its deregulated power grid, increasing renewable energy, and political leaders that are publicly pro-crypto. Most of these are rural communities seeking economic growth in the state.
