Texas lawmakers recently passed a landmark bill, HB 4474, also known as the “Virtual Currency Bill,” which recognizes cryptocurrencies and other blockchain currencies in the Texas Business and Commerce Code. The Virtual Currency Bill defines virtual currencies, establishes when a purchaser has control over such currencies, and clarifies how a security interest in a virtual currency is perfected. In addition, the UCC amendment explains how a virtual currency may be used to make payments and in loan disputes. I have attached a copy of the bill.
In 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.”
In terms of GDP, Texas is the second-largest economy in the United States and ninth-largest in the world. Passing this law in a state like Texas is a victory for bitcoin and other cryptocurrencies as it signifies acceptance in the world of conventional finance and banking.
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Download 87 (R) HB 4474
William “Pat” Huttenbach | Shareholder | Banking Litigation
Crain Caton & James | Attorneys & Counselors
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Houston, TX 77010
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No information in this communication is intended to constitute specific legal advice. For specific legal advice, please contact an attorney, and if you have any such questions or would like more information about this issue, please contact William “Pat” Huttenbach at (713).752.8616, or email at firstname.lastname@example.org.