The Texas House of Representatives has passed a crypto bill to include cryptocurrencies under the state’s commercial laws.
In a session at the Texas Legislature, the House passed the proposal that would amend the Uniform Commercial Code (UCC) in the state. If approved by the Senate, the new commercial law will include blockchain innovation and digital assets regulations. The bill was introduced to the House by Tan Parker in March.
The bill will now be handed over to the Senate, who will make any amendments and pass it if members approve. If passed, it will be signed by the Governor of Texas, Greg Abbott, and become law.
Crypto-friendly Texas State
The governor of Texas has come out as a strong supporter of cryptocurrencies and has even encouraged BTC mining in the state. Lee Bratcher, the president of the Texas Blockchain Council, has earlier stated that if the bill were passed, it would increase the chances of Texas being referred to as a crypto-friendly state.
Wyoming has been taking the lead in the US as far as crypto adoption goes. It is the only state to clearly define cryptocurrencies and how they can be used for business. Because of this, Wyoming has been a major hub for crypto firms such as Ripple. In 2020, the Wyoming State Banking Board extended a charter to Kraken, authorizing it to operate like a crypto-friendly bank.
Texas has also harbored some leading crypto mining companies such as BlockCap and Riot Blockchain. The companies are also investing in more facilities and equipment to boost their mining activities in the state.
Crypto Mining Laws in the US
While state laws regarding cryptocurrencies and the entire crypto sector are rapidly being adopted, the same cannot be said for federal laws. The US regulator, the Securities and Exchange Commission, has come out as not a strong advocate for cryptocurrencies.
In December 2020, the SEC filed a case against Ripple for offering XRP as a token rather than a security. Ripple’s executives were charged for illegally obtaining money in unregistered securities. However, in recent months, Ripple has shown signs of winning the case.
The SEC has also failed to approve a Bitcoin ETF in the country. Applications made by companies such as VanEck have been postponed several times, with the SEC expected to decide for the same in June.
The US Treasury has also hesitated to create a Central Bank Digital Currency. While other countries are racing to develop a CBDC, the US has said that it will take time to develop a product that will overcome future challenges.
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