- Those who hold and mine Bitcoin, as well as those who work on the code for the decentralized cryptocurrency, will be offered protections in Texas.
- A new Bill is setting out to make Texas a Bitcoin-embracing hub.
- Senior Texan politicians have previously shown their appreciation for Bitcoin.
While the U.S.’s approach to regulating crypto makes it less appealing for companies to be headquartered there, all is not lost for Bitcoin believers. The Lone Star State is working on legislation to become the home of Bitcoin development.
A new bill has been proposed to the Texas State House of Representatives that would fully protect and “welcome the Bitcoin economy.” Texas appears to be embracing Bitcoin’s ideals as the State firmly believes in individual financial freedoms.
The bill states: “The Lone Star State has certain principles regarding items of value that are embedded in the Texas Constitution, and these principles should be applied to all citizens concerning the use and storage of Bitcoin.”
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The bill went so far as to call out the Chinese government for banning Bitcoin in 2021. It said the China ban is an “authoritarian form of rule [that is] in complete opposition to the values of the United States.”
Protecting the Hodlrs
Having set out the protection of Bitcoin’s principles, the bill described the active measure it would take to safeguard Bitcoin users in Texas. The bill provides legal protection for those owning and engaging in Bitcoin-related activities.
- Individuals who own Bitcoin are protected under Section 9, Article I, of the Texas Constitution, which states: “The people shall be secure in their persons, houses, papers, and possessions, from all unreasonable seizures or searches.”
- Bitcoin miners will be free to engage in mining without restrictions from any law or resolution and to seek out any form of energy for securing the Bitcoin network.
- Texas will support individuals who code or develop on the Bitcoin network under Section 8, Article I of the Texas Constitution, which protects freedom of speech and the press.
Many of the protections being offered under the Texas bill are in contrast to the rest of the U.S. For example, on March 9, the administration of President Joe Biden proposed a tax on cryptocurrency miners equal to 30 percent of the cost of electricity.
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Despite the federal government’s decisions on controlling and regulating crypto, there seems to be a high chance that the Texas Bill will make it into State law and offer a safe haven from the country’s federal approach.
According to the legislative process, the bill will go through the House — if approved, the Senate will see it next, and after that, the Governor’s office.
The Governor of Texas, Greg Abbott, has referred to himself as a “crypto law proposal supporter” on Twitter, adding “Texas should lead on this [supporting positive crypto laws] like we did with gold depository.
On the Flipside
- Texas Senator Ted Cruz has, on March 21, put forward legislation trying to block the creation of a U.S. Digital Dollar CBDC. He believes such an instrument would be a financial surveillance tool for the government.
Why You Should Care
With crypto regulation remaining ambiguous and predominantly un-codified, businesses feel pushed out of the U.S. However, legislation that protects Bitcoin holders and miners should lead to more friendly legislation for crypto businesses.
Read more about how Texas embraces Bitcoin:
Fort Worth in Texas Becomes the First U.S. City to Mine Bitcoin
Read more about Sen. Cruz’s plans to block a U.S. CBDC:
Sen. Ted Cruz Introduces Legislation to Block U.S. Digital Dollar CBDC.
