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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 87(R)

House Bill 4474

House Author:  Parker et al.

Effective:  9-1-21

Senate Sponsor:  Paxton


            House Bill 4474 amends the Business & Commerce Code to establish that a purchaser of a virtual currency, as defined by the bill, acquires all rights in the virtual currency that the transferor had or had power to transfer and that a purchaser of a limited interest in a virtual currency acquires rights only to the extent of the interest purchased. The bill also establishes the conditions under which a person has control of virtual currency and provides for the exclusivity of certain powers specified in those conditions. The bill, among other provisions, including provisions regarding a perfected security interest in virtual currency, establishes that a qualifying purchaser acquires the purchaser's rights in a virtual currency free of any adverse claim in addition to acquiring the rights of a purchaser and sets out additional related provisions regarding an adverse claim.