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In the United States, both federal and state laws classify cryptocurrencies at various levels. Many states are friends of the new sector, while others are not so comfortable with its citizens investing in an unregulated financial sector.
Texas, which believed to be one of the friendly states to blockchain companies, is now seeing the stablecoin as "money" according to the updated guidelines of the Texas Banking Department and may request a license to issue the same.
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Stablecoins are coins with dollars, which means for every digital currency issued, the issuer needs to put a dollar in its currency box. This sector has become very profitable and flourishing as most of the crypto trades, including the main ones, are making these stablecoins their base currency for trading encryption to ignore the heavy restrictions involved in fiat-based trading.
The memorandum published by Charles Cooper, commissioner of Texas Banking, explains in detail how federal and state laws should view digital coins by emphasizing the assessment of stablecoins supported by fiat.
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"A license analysis will be turned on if the stablecoin provides the holder with a right of redemption for the sovereign currency, thus creating a credit that can be converted into cash or monetary value, regardless of whether the right to redeem is expressly granted or implied by the issuer, "said the note.
Crypto is not money
This recent memo is an updated version of the one published in 2014. Cooper later declared that the state of Texas does not consider cryptocurrencies as "money" and any exchange of cryptocurrencies for Fiat does not fall within the "currency exchange". This allowed the encryption of exchanges to operate from the state without acquiring any license to conduct currency transactions.
"However, when a cryptocurrency transaction includes the sovereign currency, it may be the transmission of money depending on how the sovereign currency is handled.A license analysis will be based on sovereign currency management," the note further noted. updated.
A cryptographic hub
Liberal laws in the solitary star state have attracted the attention of many international actors willing to enter the US market. Last year, Finance magnates reported that the Bitmain encryption giant is planning to open a new data center in Rockdale, a small city in the state.
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