Texas House of Representatives passes new bill to formally recognize the legal status of cryptocurrency

The Texas House of Representatives has just unanimously passed the "Virtual Currency Bill" which recognizes the legal status of virtual currency.

Texas Governor Greg Abbott has personally backed the landmark crypto bill, which still needs to be approved by the Senate before it becomes law, making the Lone Star State one of the two major crypto hubs in the country, along with Wyoming.

The bill seeks to include the term “virtual currency” in the Uniform Commercial Code and regulate commercial transactions in the state, stating:

“Virtual currency is a digital representation of value that serves as a medium of exchange, unit of account and/or store of value and is typically secured using blockchain technology.”

If it becomes law, it will provide a legal framework for the acquisition and storage of cryptocurrencies. The bill would allow purchasers to share “power” with others, making it possible for financial institutions to engage in cryptocurrency custody.

Texas is the largest state in the southern United States and the second largest state in the country. It is well-known for its energy and petrochemical industries and is favored by crypto companies.

It was previously reported that Samsung plans to invest $10 billion to build a chip manufacturing plant in Austin, Texas, and Blockcap, a leading US Bitcoin mining company, is also located in Texas. Bitmain, headquartered in Beijing, also set up a branch in Texas due to the low electricity costs and relaxed and friendly regulatory atmosphere. Other companies that have established mining centers in Texas include Argo Blockchain, Great American Mining, Riot Blockchain and Whinstone.