A group of crypto and blockchain firms have joined together to create a Texas crypto advocacy group. The Crypto Freedom Alliance of Texas was founded by a16z crypto, Coinbase, Ledger, Bain Capital Crypto, Blockchain Capital and Paradigm to promote “the development of coherent and predictable regulations for digital assets in Texas.”
To further its goals, the Crypto Freedom Alliance will foster educational initiatives that will target government officials, corporations, non-profits, and other organizations to highlight the value of Web3 in the state of Texas, according to itsSept. 11 announcement.
Cointelegraph met up with a16z crypto’s global head of policy, Brian Quintenz, at the Permissionless II conference in Austin to get further details on the new group. According to Quintenz, Texas is uniquely suited to become a haven for Web3 developers, but this necessitates forming an advocacy group to tackle issues in the state.
For example, Quintenz argued that decentralized autonomous organizations (DAOs) often need legal jurisdiction to operate. Texas is an attractive state, thanks to its adoption of the Uniform Code of Unincorporated Associations.
“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.
However, small changes would need to be made to this code to allow DAOs to be recognized as legal entities:
“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 advocating for changes to the unincorporated association laws, Quintenz said the group would also push for crypto-friendly tax laws, bank charter laws and bank regulations. He considered Wyoming’s bank charter laws to be “a positive example” of what can be accomplished by crypto-friendly legislatures.
Texas is a popular hub for crypto mining in the U.S. The majority of Genesis Digital Assets' U.S.-based rigs are in Texas. On July 3, crypto mining firm Hut8 also moved 6,400 mining computers to the state.