Texas considers stablecoins as money
Upon the decision of the Department of Banks, the stablecoins will require an official license to circulate in the state
The Department of Banks of the State of Texas issued this January 4th a memorandum in which stablecoins are officially qualified as money. This indicates that its issuers now require a license to operate.
According to Charles Cooper, Commissioner of State Banking, “cryptocurrencies are generally not seen as money under Texas law, and the exchange of cryptocurrencies by fiat does not count as a ‘currency exchange.’ New companies do not need to acquire currency exchange licenses to operate in this state”.
The stablecoins, on the other hand, can be considered as “money” or “monetary value”. Therefore, the stablecoins are considered “a form of centralized virtual currencies that is backed by the issuer with sovereign currency, precious metals or cryptocurrency and, therefore, has intrinsic value“.
In view of this statement, the stablecoins may be used in various exchanges, according to the local Monetary Services Law.
The memorandum states that, in accordance with Texas banking policy, exchanges include cryptocurrency/cryptocurrency and cryptocurrency/fiat. The exchange and the new companies are obliged to comply with the relevant laws, particularly if they make money transfers.
M.Pino
Source: Coincrispy
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