Crypto gained recognition in the state of Texas after bills 4474 and 1576 came into effect on September 1.
Texas House Bills 4474 and 1576 were passed by both chambers in May. Then they were signed into law by Governor Greg Abbott in June and took effect on September 1. Bill 1576 establishes a blockchain working group in Texas and bill 4474 amends the state’s Uniform Commercial Code to recognize crypto under commercial law.
Lee Bratcher, president of the Texas Blockchain Council said that bill 4474 better defines the security interests for Bitcoin (BTC) and other virtual currencies to “allow institutional investors to get involved with sizable investments.”
He also stated that the Texas Banking Commissioner and the Texas Department of Banking made an announcement in June. They said banks with a state charter can custody crypto under certain circumstances.
“This is positive for crypto generally because Texas became the 4th U.S. state, behind Wyoming, Rhode Island and Nebraska, to clarify the commercial law status of these assets.”Caitlin Long
“This means parties to transactions have clarity regarding their legal rights and obligations. Judges have a roadmap to adjudicate disputes, and lenders know they have an enforceable lien on the crypto pledged as collateral for collateralized loans.”Caitlin Long
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