Texas explores recognizing bitcoin as money

Sandra Loyd

Bitcoin and other cryptocurrencies could be close to being recognized as money in the current commercial regulation in Texas , United States. At least that is what a bill recently introduced before the House of Representatives by Tan Parker, representative of the town in the west of the North American country, provides for it.

The proposal, known as the bill 4474, explores “the control of virtual currency and the rights of buyers who obtain control of virtual currency for the purposes of the Uniform Commercial Code”, legislation currently in force.

In The document presented to the House of Representatives defines “virtual currencies” as “a digital representation of value that functions as means of exchange, unit of account or reserve of value and, often, it is protected by blockchain technology. ”

The definition of the project towards digital assets is not limited only to bitcoin and cryptocurrencies as a form of virtual currency, although it does not expose specific cases for the moment.

This amendment to the commercial legislation would enter effective on September 1 of this year , as briefly exposes the third section of the document introduced by Parker a couple of weeks ago.

The new legal framework that would come into operation would follow the legalization of bitcoin as money in another state of the North American country. Texas would be just the second state to do so, after Wyoming in 2019.

This is how Caitlin Long, founder and CEO of Avanti Financial Group, a company founded in Wyoming with the purpose of serving as a bridge between cryptocurrencies and payment systems currently existing in the United States.

Through a thread on Twitter, Long explained that he finds it impressive and a long-pending debt time the inclusion of cryptocurrencies in commercial legislation.

The executive explained that there are still challenges to address before the new legal framework comes into effect, if approved. For the moment, it seems to him that the proposal does not clearly address tax issues for bitcoin owners, so he calls on those involved to analyze the proposal and address these gaps.

While a The new state pays attention to the possible implications of bitcoin as money in its commercial dynamics, the authorities of the North American country maintain a conservative position in this regard.

In its legal action framework for bitcoin, presented at the end of last year, the Department of Justice emphasized the opportunities generated by technological evolution to commit crimes and put US national security at risk.

For its part, the Service Internal Revenue (the IRS) has focused on accumulating tools that allow it to track the movements in blockchains of various cryptocurrencies and violate the privacy offered by some of them, including bitcoin through the re d Lightning.

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