The Texas House of Representatives has just passed two bills whose effect makes cryptocurrencies and blockchain protocols recognized within Texas commercial law.
These bills are legislation 4474 and 1576, passed by both Houses in May and signed into law by Texas Governor Greg Abbott in June. They officially went into effect on September 1.
Act 1576 establishes the Texas Blockchain Council, an aggregation of crypto-businesses interested in expanding the adoption of new cryptographic technologies in the state. For its part, Act 4474 recognizes cryptocurrencies and blockchain within the state’s Commercial Law and allows institutional investors “to get involved with substantial investments,” explains Lee Bratcher president of Texas Blockchain Council for Cointelegraph.
Texas thus becomes the fourth state after Wyoming, Rhode Island and Nebraska to incorporate cryptocurrencies and blockchain protocols into its commercial laws.
The incorporation of cryptocurrencies into state commercial law “means that parties in transactions have clarity regarding their legal rights and obligations, judges have a roadmap for adjudicating disputes, and lenders know they have an enforceable lien on crypto pledged as collateral for secured loans,” said Citling Long, a proponent of cryptocurrency incorporation in Wyoming.
Following the crusade against bitcoin in China, several miners have set up shop in Texas, the state that is currently home to specialized bitcoin mining businesses such as BlockCap and RiotBlockchain.