Laws and regulations regarding the cryptocurrency market have begun to take an important place in recent years. Texas is also preparing to take important steps regarding the regulations required by this new economic world. Coinbase, Paradigm, a16z and other notable companies are coming together to push for more open and progressive cryptocurrency regulations in Texas.
Coinbase and famous companies join forces for uniform regulation
In a hot development, a coalition formed by a16z, Bain Capital Crypto, Blockchain Capital, Coinbase, Ledger and Paradigm will push for more transparent and uniform cryptocurrency regulations in Texas. The coalition points out the inadequacy of the federal government in this area. In particular, he emphasizes that Texas has a chance to adopt improved cryptocurrency regulations.
This alliance will aim to be a source of information for Texas regulators and industry stakeholders and maximize the potential of crypto technology. Earlier this year, the Texas Senate agreed to eliminate tax incentives for cryptocurrency miners. It also unanimously approved a bill that calls for stricter regulations on energy consumption.
Obstacles in the legislative process
However, the House was unable to vote on the bill before the legislative session ended in May. This bill, Senate Bill 1751, was introduced by three Republican state senators. However, it has faced opposition from cryptocurrency supporters in the region. According to Kristine Cranley, director of business development for the Texas Blockchain Council, the bill imposes “arbitrary caps” on miners. It also increases costs for grid stabilization services. Coinbase and famous companies will enable the market to raise its voice in these areas.
Could Coinbase’s move make Texas a new cryptocurrency hub?
In June 2021, Texas signed a regulation granting contracted banks the right to hold cryptocurrencies. Advantages in the state, such as cheap electricity and no state income tax, have made it a magnet for crypto mining in recent years.
Texas is one of the states leading cryptocurrency regulations in the United States. Coinbase exchange is in a strong position because it is based in the USA. Additionally, the state has implemented a number of important regulations and initiatives over the years. cryptokoin.comSome cryptocurrency regulations and dates that came into force in Texas, which we have compiled as:
- 2017: Texas first enacted a regulation ensuring consumer protection regarding cryptocurrencies in 2017.
- 2019: The Texas legislature considered a regulation also known as the “Virtual Currency Act.” This regulation clarified the definition and status of cryptocurrencies.
- June 2021: Texas enacted a regulation allowing banks to hold cryptocurrencies on customers’ behalf. This regulation formalized the authority of banks to hold cryptocurrencies and provide custody services for their customers.
