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September 4, 2021

Cryptocurrencies Gain Legal Status in Texas as New Laws Take Effect

By Daily Hodl Staff

Texas becomes the latest US state to adopt crypto and blockchain technology under its commercial law. 

Texas House Bills 1576 and 4474, passed in May by the state’s Congress and in June by Governor Greg Abbott, officially make crypto legal in Texas effective September 2021.

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House Bill 1576 focuses on the creation of a working group that oversees the expansion of the blockchain industry in the state of Texas.

“In developing the master plan, the workgroup shall: identify economic growth and development opportunities presented by blockchain technology… [and] make any legislative recommendations that will help promote innovation and economic growth by reducing barriers to and expediting the expansion of the state’s blockchain industry.”

House Bill 4474 adds the definition of the term “virtual currency” into the state’s Uniform Commercial Code, the set of laws that govern business transactions in Texas.

“Section 9.102, Business & Commerce Code, is amended by adding Subsection (29-a) to read as follows: 

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‘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.”

In a new interview by Cointelegraph, Lee Bratcher, the president of the Texas Blockchain Council, says that House Bill 4474 allows “institutional investors to get involved with sizable investments.” 

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Featured Image: Shutterstock/Nate Hovee