Crypto Companies Establish Texas Blockchain Group to Push for Regulatory Clarity

Texas Crypto Advocacy Group “Crypto Freedom Alliance of Texas” Formed by Leading Crypto Firms

In a joint effort, a group of prominent cryptocurrency and blockchain companies has established the “Crypto Freedom Alliance of Texas,” according to an announcement made on September 11. The group comprises a16z crypto, Coinbase, Ledger, Bain Capital Crypto, Blockchain Capital, and Paradigm, and aims to advance the development of clear and predictable regulations for digital assets in the state of Texas.

#Crypto Freedom Alliance of Texas Launches to Support Clear Digital … – Business Wire https://t.co/kn9LdN5zj1 pic.twitter.com/VzgqpEc0uC

— Stock Market News (@Stock_Market_Pr) September 11, 2023

The Crypto Freedom Alliance of Texas plans to engage in educational initiatives directed towards governmental entities, corporations, non-profit organizations, and other relevant bodies to emphasize the value of Web3 technology in Texas.

Texas: A Hub for Web3 Development

Brian Quintenz, the global head of policy at a16z crypto, expressed his views on the establishment of the advocacy group during an interview with Cointelegraph at the Permissionless II conference in Austin. According to Quintenz, Texas has the potential to become a favorable destination for Web3 developers, but it requires the formation of a collective effort to address various issues in the state.

“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,” Quintenz stated.

“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. We don’t want to just open it up to anybody and say ‘Oh, I’m a DAO.’ You can only really qualify for this if you’re a decentralized kind of organization.”

In addition to pursuing amendments to the unincorporated association laws, the Crypto Freedom Alliance of Texas intends to support the implementation of crypto-friendly tax laws, bank charter laws, and bank regulations. Quintenz commended Wyoming’s bank charter laws as a positive example set by crypto-friendly legislatures.

Texas has gained prominence as a crypto mining hub in the United States, with companies such as Genesis Digital Assets and Hut8 establishing their operations in the state.