Phil Stephenson, a member of the Texas House of Representatives, wants to ban the anonymous use of crypto. He has tabled a bill that would require Texas residents to reveal their identity while dealing with digital money. The House Bill No. 4371 states that people who wish to send or receive cryptocurrencies need to be known.
A section of the bill reads,
Before accepting payment by a digital currency, a person must verify the identity of the person sending payment. A person is not required to verify the identity of a person sending payment if a verified identity digital currency sends the payment.
A more in-depth look at the bill shows that the person receiving the money must know who the sender is. The bill also appoints four groups that would educate people on how to proceed.
The Four Agencies
These are the Texas Credit Union Commission, the Department of Banking, the Department of Public Safety and the State Securities Board.
These agencies will work together to create the tools that people will use in this process. The tools will help investors to know which coins allow people to become anonymous, and which currencies do not.
Besides, the Department of Public Safety will teach the police and other law enforcement agencies about crypto. This will guide them on what steps to follow to ensure that residents in the state comply with the new rules.
Verified Identity Digital Currency
HB 4371 defines the “Verified identity digital currency” to be a form of crypto that enables the sender to know who the intended recipient is. If the bill becomes law, it will be effective from September 1st.
From that time, it would be illegal to send or receive privacy coins without verification.
The Unpopular Vote
Phil Stephenson is a CPA. He recently won his seat in a contest against Jennifer Cantu, a Democrat. Despite this, a free-market, non-profit group, Texan for Fiscal Responsibility, gave him a score of 40. This is a meager favorability rating for a Texan lawmaker.
Andrew Hinkes from New York and Miami universities said:
Congratulations Texas, you’re the first state to formally attack and attempt to ban anonymous use of cryptocurrency in the U.S.” The bill comes as a blow to cryptocurrency enthusiasts.
This new bill does not help make matters better. Texas has always been one of the friendliest states when it comes to crypto. If this bill becomes law, the state will be the first to ban anonymity in virtual currencies formally.
Do you think bill H.N. 4371 will become law? Why or why not? Let us know in the comments section below.
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