Home
News
- Texas blockchain community has not gone boom and bust as a bill for a legal framework is under way
- Mining activity has dominated the state as numerous block deals to overtake mining companies have taken place
- Bills passed will allow citizens to use cryptocurrency in commercial transactions for better viability and growth
Bitcoin and other cryptocurrencies had been banned by the Texas government and the price crash of 2019 led investors to draw the ire of the regulators. Traders and investors were wary if Bitcoin’s price could even breach $10k during that time but the markets have changed for the better since then.
Bitcoin reached a high of $62k in May 2021 and has also fallen to its February lows owing to regulations and Musk’s tweets. There’s been a lot of hue and cry about Texas allowing citizens to use cryptocurrency as a mode of commercial payment but the governor is here to clear the air.
Legal framework to protect crypto community
With only $2.3 million Bitcoins to be mined, the Texas government is pulling all the hooks to become a crypto friendly state after Wyoming. Bitcoin currently has a market capitalization of $1 trillion and with a legal framework in place, validators will not look to exploit investors for personal gains.
Illicit activities will come to a halt and money laundering by scammers will be in check. Moreover, the legal status of cryptocurrency in Texas will lead to cryptocurrency companies setting up bases in the state. It will be the second most crypto friendly state.
Mining activity on the rise
To put things into context, Texas has the largest mining business in the country. Rockdale’s mining operations were overtaken by Riot Blockchain in a deal worth $651 million in cash and stock. The Texas Blockchain Council is playing its part to push four bills in the House and Senate regarding cryptocurrency.
A bill will reportedly allow the state to form a Uniform Commercial Code amendment that in return will allow cryptocurrencies to be used for commercial transactions. However, liens placed on personal crypto investments will not be solved.
Moreover, a bill is in the works that will enable electronic signatures anchored by a blockchain network and be used on smart contracts within Texas. Legislators will be able to use smart contracts and new use cases are likely to emerge.
Texas will pay special attention to Bitcoin Policy, Law, Taxation and Hedge Funds to reduce criminal activities. Demand for blue collar jobs have increased as mining activities are at the forefront in Texas. With more than twenty small-scale mines present in the state, digital currencies will soon get the legal status that they deserve.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
