Texas Is Taking Action to Convert Bitcoin Into a State Law

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Texas is making moves to ensure BTC(Bitcoin) gets legislative recognition by the state trade law. The City’s House passed two bills that were effective as of September 1; 4474 and 1576. 

Governor Greg Abbott signed the law into existence in June, and they cover different purposes. 

Bills 1576 and 4474

Lee Bratcher is the president of the TBC(Texas Blockchain Council). According to Bratcher, these laws will enable institutional investors to involve themselves in sizable investment plans.

The TBC president revealed that the city’s constitution had undergone more than 500 amendments. Additionally, Lee says there is a great possibility that an amendment allowing property tax paid in Bitcoin will pass.

Bill 1576 established a blockchain working group in Texas City. The bill basically relates to the creation of a workgroup on blockchain matters concerning this state”.

HB 4474 provides a framework to show that virtual funds are subject to Texas legislation. The house bill also adopted the Uniform Commercial Code’s language.

The UCC is a set of laws that govern every commercial transaction in the United States. These laws are maintained under PEB’s guidance (Permanent Editorial Board for the Uniform Commercial Code). 

Although states can freely adopt this proposed language, UCC’s Article 12 will see its finalization in 2022. 

House Bill 4474 Points Out;

  • Definition of virtual currency
  • Shows how to virtually control currency 
  • Ways to be a qualifying buyer
  • How to perfect security interests necessary for virtual transactions 
  • How the bills will positively impact the Market 

Experts believe these bills will encourage more investors to join the Crypto ship as they get more confident. This is because investors are more comfortable as they now have legal certainty regarding Crypto purchases and their use as collateral.

Other than Texas, other states that have clarified the commercial law of these digital assets include; Wyoming, Nebraska, and Rhode Island. In addition to this, Florida and Tennessee are also looking for ways to accept Bitcoin for property tax payments. 

HEB, a Major supermarket chain, announced its plan to install Crypto ATMs in its Texas branches in June. Texas is home to Blockcap, Riot Blockchain, and so many more.

Challenges

Recently, the SEC threatened to sue Coinbase, and such acts by the federal government regulators pose a big challenge.

As a result, many investors are moving to countries that are warming up to the Crypto market, including Switzerland.

In summary, lack of clarity on Crypto from the federals is a significant challenge for the progress of the amendments trying to be made.