Bitcoin and other crypto currencies 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 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, “virtual currencies” are defined as “a digital representation of value that functions as a medium of exchange, unit of account or store of value and is often protected by blockchains technology.”.
The definition of the project towards digital assets is not limited only to Bitcoin and crypto currencies as a form of virtual currency, although it does not expose specific cases at the moment.
This amendment to the trade law would take effect 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 only 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 crypto currencies and the payment systems that currently exist in the United States, considers it.
Through a thread on Twitter, Long stated that he finds the inclusion of crypto currencies in commercial legislation impressive and a long-overdue debt.
The executive explained that there are still challenges to address before the new legal framework takes effect, if approved. At 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 new state focuses its attention on the possible implications of Bitcoin as money in its commercial dynamics, the authorities of the North American country maintain a conservative position on the matter.
In its legal action framework for Bitcoin, unveiled late last year, the Justice Department emphasized the opportunities generated by technological evolution to commit crimes and jeopardize American national security.
For its part, the Internal Revenue Service (the IRS) has focused on accumulating tools that allow it to track the movements in blockchains of various crypto currencies and violate the privacy offered by some of them, including Bitcoin to over the Light in network.