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Texas passes BTC and cryptocurrency bill

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Texas bitcoin bill

Yesterday, the Texas Senate passed a new BTC and cryptocurrency bill that Governor Greg Abbott will have to sign to put into effect.

The so-called Virtual Currency Bill seeks to establish a legal framework in the territory for investments in BTC 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 BTC and cryptocurrencies, so much so that the new law was passed with bipartisan support from the major parties.

Indeed, Texas is becoming “BTC friendly”, so much so that Governor Abbott himself has called the state “the Mecca For BTC 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 “BTC country“.

Texas BTC law

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.

The post Texas passes BTC and cryptocurrency bill appeared first on The Cryptonomist.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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