In an effort to advocate for clear and consistent regulation of digital assets in Texas, a coalition of leading crypto and blockchain organizations, including a16z crypto, Coinbase (NASDAQ:COIN), Ledger, Bain Capital Crypto, Blockchain Capital, and Paradigm, launched the Crypto Freedom Alliance of Texas today, Monday. The Alliance aims to serve as a vital resource to regulators and industry members in Texas who are keen to learn and use this transformative technology.
The Alliance's launch comes amidst the federal government's failure to pass sensible legislation regulating digital assets. As a result, there is an enormous opportunity for Texas to take a proactive stance by embracing pragmatic and forward-thinking crypto regulations.
Kinjal Shah, Crypto Freedom Alliance of Texas Chair and General Partner at Blockchain Capital, highlighted the state's potential role in setting standards for crypto policy. "In the face of federal inaction, Texas should move forward and lead by example with sensible crypto policies that protect consumers and investors, and foster innovation," Shah said.
The Alliance aims to foster educational initiatives targeting government officials, corporations, non-profits, and other organizations to highlight the value of Web3 in Texas. It also plans to advocate for changes to unincorporated association laws for decentralized autonomous organizations (DAOs), crypto-friendly tax laws, bank charter laws, and bank regulations.
Brian Quintenz, a16z crypto's global head of policy, elaborated on why Texas is uniquely suited to become a haven for Web3 developers. He pointed out that DAOs often need legal jurisdiction to operate and Texas' adoption of the Uniform Code of Unincorporated Associations makes it an attractive state for such organizations. However, he emphasized that slight modifications would be needed in this code to allow DAOs to be recognized as legal entities.
Texas has already emerged as a popular hub for crypto mining in the U.S., with Genesis Digital Assets basing most of its CPUs in the state. Crypto mining firm Hut8 also moved 6,400 mining computers to Texas on July 3.
The Alliance is set to host its launch event in Austin on Tuesday, September 12 at 6:00 PM ET.
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