Guarantee the application of commercial law to virtual currencies
In Texas, USA, a bill HB4474 that positions crypto assets (virtual currency) in the commercial law was passed. It will give legal certainty to the crypto-related industry and support it.
Blockchain is a booming industry that Texas needs to be involved in.
— Greg Abbott (@GregAbbott_TX) June 5, 2021
Texas Governor Greg Abbott tweeted himself signing, commenting:
Blockchain is a growing industry, and Texas needs to join in. I have just signed a law to make a basic plan for nurturing the blockchain industry.
The bill includes the definition of “cryptocurrency” in the Texas Uniform Commercial Code and ensures that this key business law applies to cryptocurrencies. Texas companies involved in cryptocurrencies, such as Bitcoin (BTC), will gain legal transparency in handling cryptocurrencies.
Significance of the new bill
In an April National Law Review article, lawyers Daryl Roberston and Patrick Boot explained the significance of the new bill. According to the article, the bill sets out important matters for banks and other financial institutions to provide cryptocurrency custody services.
It’s also a cautious approach to adding cryptocurrency definitions to existing legislation, but it gives Texas the flexibility to adopt additional cryptocurrency-specific legislation in the future. I explained that it was created like this.
The HB4474 bill also provides a clear framework and security interests for cryptocurrency buyers to establish “control” of tokens. According to the bill, the definition of virtual currency is as follows.
(A) Used as a medium of exchange, account, or storage of value, (B) not in fiat currency, even though the face value is displayed in fiat currency
On the other hand, online game tokens, commercial rewards (generally points for shopping, etc.) and other tokens are excluded from the above.
Submitted a bill to foster blockchain
While the cryptocurrency mining business is booming in Texas due to cheap electricity, the number of politicians who support the cryptocurrency industry is increasing, including Governor Abbott who calls “Texas a mecca for new Bitcoin miners”. ing.
The cryptocurrency-related bill HB1576, which is being deliberated in Congress separately from the bill passed this time, calls for the establishment of a working group for the blockchain industry in Texas. The bill is also backed by the local trade association Texas Blockchain Council.
According to the council, HB1576 will research the existing blockchain industry in Texas, identify the economic growth opportunities it brings, and the workforce needed to deepen blockchain expertise across industries. And asks to analyze academic programs.
On top of that, the aim is to reduce the barriers to the blockchain industry, grow the industry, and derive legal recommendations that promote innovation and economic growth.
Texas has attracted crypto mining companies due to its low electricity prices and high proportion of renewable energies such as wind and solar power. Many major mining companies such as Bitmain, Blockcap, Argo Blockchain, Compute North, Riot Blockchain and Whinstone are operating in Texas or planning to build new facilities. In January 2008, SBI Holdings and GMO Internet signed a contract to use one of the world’s largest mining facilities, which began construction in Rockdale, Texas, USA.
With the passage of a bill to boost cryptocurrencies, Texas is likely to become even more attractive to the industry.
Reference: LegiScan, National Law Review
Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”