Cryptocurrency being scrutinised by lawmakers

According to reports coming from Coin Center and the head of research Peter van Valkenburgh, there have been concerns on the use of cryptocurrencies in Texas given a controversial new law that Texas threatens cryptocurrency users with strict stance on the use of certain cryptocurrencies.

This new law seeks to ban the use of anonymous cryptocurrencies by unidentified parties.

The new bill which goes by the name HB-4371 only affects Texas residence. At the moment, very little is understood about this new legislation which has put the cryptocurrency industry immediately under attack.

According to comments by Valkenburgh during a debate on the issue:

“Putting an undefined identity requirement on individual recipients of payments maybe ok constitutionally(but makes little sense). Person wants to pay you, you ask: and you? Person: yes. Boom payment can happen.”

Texas threatens cryptocurrency users and may be on a collision course

The bill is said to be sponsored by the Republican senator Phil Stephenson and it aims to stop the anonymity in cryptocurrencies usage, while also suggesting that the state should only accept “verified identity digital currencies.”

This has been a crucial move by the lawmakers in order to change the law with this new bill. According to Valkenburgh and others, they claim that it is unenforceable as this does not adequately describe the functionality of tokens and Bitcoin is one of the many on this list.

Putting an undefined identity requirement on individual recipients of payments is maybe ok constitutionally (but makes little sense). Person wants to pay you, you ask: are you you? Person: yes. Boom payment can happen. — Peter Van Valkenburgh (@valkenburgh) March 10, 2019

However, if the bill should gain traction, it will set Texas on a course which will diverge from the approach taken by lawmakers in other states this year.

States like Wyoming have been pushing to legislate and attract the emerging technology by fostering both cryptocurrency and blockchain activities.

This has been a headache for most businesses which have frequently been complaing about the bureaucracy trying to hurdle these needs and need clarifications before bringing out nationwide products or services.

However, the United States cannot afford to lose its place as the front-runner in cryptocurrencies and activities must go on.

What are your thoughts on the passing of this bill? Feel free to leave a comment down below.