According to a September 11 announcement, a group of cryptocurrency and blockchain companies have come together to create a cryptocurrency advocacy group in Texas. The group is called "Crypto Freedom Alliance of Texas" and is founded by a16z crypto, Coinbase, Ledger, Bain Capital Crypto, Blockchain Capital and Paradigm. The group is promoting "the development of consistent and predictable regulations for digital assets in Texas."
#Crypto Freedom Alliance of Texas Launches to Support Clear Digital... - Business Wire https://t.co/kn9LdN5zj1 pic.twitter.com/VzgqpEc0uC
โ Stock Market News (@Stock_Market_Pr) September 11, 2023
To further its goals, the Crypto Freedom Alliance will foster educational initiatives targeting government officials, corporations, nonprofits and other organizations in an effort to highlight the value of Web3 in the state of Texas, according to the announcement.
Cointelegraph caught up with a16z crypto's head of global policy, Brian Quintenz, at the Permissionless II conference in Austin to get more details on the new group. According to Quintenz, Texas is uniquely poised to become a haven for Web3 developers, but this requires forming an advocacy group to address the issues in the state.
Related: Riot Platforms says Texas energy strategy reduced production costs by $31 million
For example, Quintenz argued that decentralized autonomous organizations (DAOs) often need legal jurisdiction to operate. Texas is an attractive state thanks to the adoption of the Uniform Code of Unincorporated Associations.
โAmending unincorporated association law that applies more generally to types of limited liability entities is a state issue, and only a few states have adopted the Uniform Unincorporated Association Code. [โฆ] Texas is one of them,โ Quintenz said.
However, minor changes would need to be made to this code to allow DAOs to be recognized as legal entities:
โOne of the things we are still trying to do is advocate and educate about 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 anyone and say 'Oh, I'm a DAO.' You can only qualify for this if you are a decentralized organization.โ
In addition to advocating for changes to unincorporated association laws, Quintenz said the group would also push for cryptocurrency-friendly tax laws, bank charter laws, and banking regulations. He called Wyoming's banking charter laws "a positive example" of what cryptocurrency-friendly legislatures can accomplish.
Texas is a popular hub for cryptocurrency mining in the US Genesis Digital Assets bases most of its CPUs in Texas. On July 3, crypto mining company Hut8 also moved 6,400 mining computers to the State.
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