Yesterday, the Texas Senate passed a new bitcoin and cryptocurrency bill that Governor Greg Abbott will have to sign to put into effect.
Texas has just become the 2nd state to define virtual currencies like #Bitcoin in the UCC/Business Law and clarify definitions of control. @TanParkerTX has championed this for years and we want to say thank you! #TexasisBitcoinCountry. @mecee,@josephkelly https://t.co/vh8Gh2lEzT
— Texas Blockchain Council (@txblockchain1) May 27, 2021
The so-called Virtual Currency Bill seeks to establish a legal framework in the territory for investments in bitcoin and cryptocurrencies, and aims to provide legal clarity in the definition of virtual currencies, and a set of guidelines for Texas companies that want to be involved in this business.
In other words, the US state wants to further facilitate business and investment in bitcoin and cryptocurrencies, so much so that the new law was passed with bipartisan support from the major parties.
Indeed, Texas is becoming “Bitcoin friendly”, so much so that Governor Abbott himself has called the state “the Mecca For Bitcoin Miners”.
The state is therefore set to become one of the most favourable states in the US for those who invest in cryptocurrencies, or who want to operate in this sector professionally, so much so that it has also been defined as “Bitcoin country“.
Texas Bitcoin law
Please Retweet: The Texas Senate is down to the wire tonight—Please urge @DanPatrick to recognize @AngelaPaxtonTX to pass #HB4474 making #Texas a welcoming #Bitcoin home!#txlege #freedom pic.twitter.com/wMwaPtgdB7
— Christopher Calicott (@mecee) May 27, 2021
From a technical point of view, the new law defines virtual currencies as follows:
“Virtual currency means a digital representation of value that: (A) is used as a medium of exchange, unit of account, or store of value; and (B) is not legal tender, denominated or otherwise; and does not include: (A) a transaction in which a merchant grants, as part of an affinity or rewards program, value that cannot be taken or exchanged with the merchant for legal tender, bank credit, or virtual currency; or (B) a digital representation of value issued by or on behalf of an issuer and used exclusively within an online game, gaming platform, or family of games sold by the same issuer or offered on the same gaming platform.”
This approach is by no means shared by all other US states, and thus crypto-friendly states are likely to coexist with more sceptical or even averse states in the US.
Certainly, where there is a large supply of cheap electricity, such as in Texas, mining will be seen as an opportunity to be exploited, while where there are few business opportunities (including financial ones) the attitude may be less favourable.