The bill defines virtual currencies as a “digital representation of value.” Texas would be the second state in the United States to legalize Bitcoin as money.
The current trade regulation in Texas, United States, could soon recognize Bitcoin and other cryptocurrencies as money. A bill that Tan Parker, a representative of that state, recently introduced before the House of Representatives provides for it.
Bill 4474 seeks “the control of the virtual currency and the rights of buyers, who obtain control” of it. This draft law does it “for the purposes of the Uniform Commercial Code”, the legislation currently in force.
The document that Parker filed with the House of Representatives defines “virtual currencies.” The bill says that they are “a digital representation of value that serves as a medium of exchange, a unit of account, or a store of value.”
That definition is not limited to Bitcoin and other cryptocurrencies as a form of virtual currency, but it does not yet describe specific cases.
This amendment to the trade law would become effective on September 1st of this year. The third section of the document that Parker introduced a couple of weeks ago outlines briefly.
Second State to Legalize Bitcoin in the United States
The new legal framework would follow the legalization of Bitcoin as money in another state in the United States. After Wyoming legalized the pioneering cryptocurrency in 2019, Texas would be only the second state to do so.
Caitlin Long, Founder and CEO of Wyoming’s Avanti Financial Group, said that they aim to offer cryptocurrency services. She explained that they seek to serve as a bridge between cryptocurrencies and the payment systems that currently exist in the region.
On her Twitter account, Long stated that the inclusion of cryptocurrencies in the trade law was necessary. She commented that it was a long-overdue debt, so she finds it awesome that Texas joins them.
According to the executive, there are still challenges that they must deal with before the new legal framework takes effect. At the moment, she thinks that the bill does not clearly address tax issues for Bitcoin owners. For that reason, she asks those involved to analyze the draft law and attend to those gaps.
Position of the US Authorities on Bitcoin
A new state is turning its attention to the possible implications of Bitcoin as money in its trading dynamics. However, the US authorities maintain a conservative position in this situation.
The Justice Department issued a negative opinion on Bitcoin and other cryptocurrencies in its framework for legal action last year. They highlighted the opportunities to commit crimes and risk American national security that technological evolution provides.
As for the Internal Revenue Service (IRS), they have focused on accumulating tools to track the movements of various cryptocurrencies. They intend to search for evidence of transactions that could threaten privacy, including those with Bitcoin on the Lightning network.
The governments of the world are increasingly aware of the importance of cryptocurrencies, especially Bitcoin, in the economy. However, there are still fears that lead to tightening regulations to control their use.
By Alexander Salazar
