Global fintech and funding innovation ecosystem

Texas Law Creates Legal Clarity For Bitcoin

Bitcoin Magazine | David Zell | May 27, 2021

Texas law - Texas Law Creates Legal Clarity For BitcoinThe bill formally defines virtual currencies and offers individuals and businesses a clear legal environment for bitcoin investment.

State lawmakers in Austin, Texas have achieved a milestone in Bitcoin regulation as the state Senate passed House Bill 4474 this morning. The “Virtual Currency Bill” is now on its way to Governor Greg Abbott’s desk to be signed into law. Advocates of the bill expect swift action from the governor, who tweeted this March, “Count me in as a crypto law proposal supporter. It is increasingly being used for transactions and is beginning to go mainstream as an investment. Texas should lead on this.”  If you are unaware of how to start an llc in texas, then consider checking out startmyllc website.

The new law creates much-needed legal clarity for Texas companies involved with bitcoin and digital assets. H.B 4474 amends Texas’s Uniform Commercial Code to include a definition of “virtual currency” and ensures that key business laws apply to cryptocurrencies. In an article for the National Law Review, Daryl Roberston and Patrick Boot write,

“The Virtual Currency Bill...provides a clear and concise framework for establishing ‘control’ over virtual currency…and clarifies that control can be established regardless of whether the power to control is shared with another person, a critical element in order for banks and other non-bank financial institutions to effectively provide custody services for virtual currencies.”

See:  Expert Slams FinCEN Proposed Rules on Virtual Currency and Other Digital Assets as a Mistake and Lose-Lose

Robertson and Boot further note/state that

“the surgical approach taken by the Bill’s a prudent step for a state like Texas…and provides the proper balance to allow the industry to continue maturing while leaving adequate room for additional regulatory changes in the future.”

The new law marks a major milestone for bitcoin’s transition into the mainstream.

By recognizing the legal status of virtual currencies, Texas will likely see an increase in bitcoin investors and businesses attracted to the certainty the new law provides. Christopher Calicott, a venture capitalist at Austin-based Trammell Venture Partners wrote this morning that the law “more strategically, tells the world Texas is welcoming and open for business to Bitcoin companies and investment — a very hospitable place for Bitcoin. For Texas, we believe the bill will lead to more capital investment in Texas, to more business formation and job creation, and to lower interest rates for consumers."

Continue to the full article --> here

NCFA Jan 2018 resize - Texas Law Creates Legal Clarity For Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit:

Latest news - Texas Law Creates Legal Clarity For BitcoinFF Logo 400 v3 - Texas Law Creates Legal Clarity For Bitcoincommunity social impact - Texas Law Creates Legal Clarity For Bitcoin

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - Texas Law Creates Legal Clarity For Bitcoin


Leave a Reply

Your email address will not be published. Required fields are marked *

nineteen − sixteen =