The Lone Start State sees the establishment of a new crypto advocacy group.
Major players in the cryptocurrency and blockchain space, including a16z, Bain Capital Crypto, Blockchain Capital, Coinbase, Ledger, and Paradigm, have come together to establish the Crypto Freedom Alliance of Texas.
The alliance aims to advance clear and consistent regulations for digital assets in the Lone Star State.
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On top of that, the Crypto Freedom Alliance of Texas has set its sights on comprehensive educational programs aimed at government officials, corporations, non-profits, and other entities. These initiatives intend to underscore the significance of Web3 technology in Texas.
Brian Quintenz, the global head of policy at a16z crypto, shared insights on why Texas is an ideal location for the alliance’s activities during the Permissionless II conference in Austin. According to him, the existing Uniform Code of Unincorporated Associations makes the state an attractive destination for decentralized autonomous organizations (DAOs). Quintenz stated:
Modifying the unincorporated association law that applies more generally to limited liability types of entities is a state issue, and there are only a few states that have adopted the Uniform Code of Unincorporated Associations <…> Texas is one of them.
However, Quintenz indicated that some adjustments need to be made to the existing legal framework to accommodate DAOs.
One of the things we continue to try to do is to advocate and educate around creating a legal entity for DAOs that makes some changes to the unincorporated association framework but makes it more restrictive.
Besides advocating for DAO-friendly regulations, the group plans to push for crypto-advantageous tax policies, bank charters, and banking laws. Wyoming’s crypto-friendly legislative landscape was cited by Quintenz as a model for what can be achieved.
It is worth noting that Texas has already made a name for itself in the crypto sector. In May, local legislators approved the Proof-of-Reserve bill, requiring crypto exchanges to maintain adequate reserves to cover their obligations to customers.
The formation of the Crypto Freedom Alliance of Texas marks a proactive step toward bringing regulatory clarity to the blockchain and cryptocurrency space in Texas. With powerhouse companies leading the charge and a focus on education and legal adaptations, the alliance aims to make Texas a leading hub for crypto innovation and adoption.