The Texas House of Representatives has passed a “Virtual Currency Bill” that recognizes the legal status of cryptocurrencies under commercial law in the state.
In the 87th session yesterday, Texas Legislature lawmakers passed a proposed amendment to the state’s Uniform Commercial Code, or UCC, aimed at better adapting commercial law to blockchain innovation and digital asset regulations. First introduced by Representative Tan Parker in March, House Bill 4474 will reportedly help define cryptocurrencies in the UCC.
The “Virtual Currency Bill” will now go to the Texas Senate for any proposed amendments and potentially a final vote. Should the crypto legislation pass the senate, Texas Governor Greg Abbott can sign the bill into law. Abbott has already said he is a “crypto law proposal supporter” — specifically referencing HB 4474 — and seemed to encourage Bitcoin (BTC) mining firms to set up shop in the state.
If turned into law, it would provide a legal framework for obtaining control over cryptocurrencies. The bill allows the purchaser to share “the power with another person,” thus making it possible for financial institutions to engage in crypto custody.
Texas is already home to the largest crypto mining firms in the world.