Members of the Texas House of Representatives just passed a proposed piece of legislation which recognizes the use of cryptocurrencies in commercial transactions.
House Bill 4474 seeks to insert a definition of the term ‘virtual currency into the state’s Uniform Commercial Code (UCC), the set of laws that governs business transactions in the US.
“Section 9.102, Business & Commerce Code, is amended by adding Subsection (29-a) to read as follows:
(29-a) ‘Virtual currency’ means a digital representation of value that functions as a medium of exchange, unit of account, and/or store of value and is often secured using blockchain technology.”
If the proposed legislation becomes law, it will provide a legal framework for dealings that involve cryptocurrencies and blockchain.
The bill was passed during the Tuesday session of the 87th Texas Legislature. It now travels to the Texas Senate for amendments and voting.
Texas Governor Greg Abbott is expected to sign the proposed legislation into law after stating that he is a supporter of the pro-crypto bill.
Apart form Texas, other states are also moving to accommodate crypto use in mainstream transactions. In March, Miami Mayor Francis Suarez submitted a proposal to allow residents to pay their taxes in Bitcoin (BTC) and for employees to receive their pay in the flagship cryptocurrency.
Amid the rising popularity of cryptocurrencies, members of the US House of Representatives have also introduced the Eliminate Barriers to Innovation Act of 2021 (H.R. 1602) to establish the jurisdictions of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital assets.
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