In a recent development, the Texas legislature has approved a bill that imposes new requirements on cryptocurrency exchanges operating in the state. The legislation, known as HB-1666, was jointly sponsored by state Republicans Rep. Giovanni Capriglione and Sen. Tan Parker. It applies specifically to digital asset service providers with over 500 customers or holding $10 million in customer funds.
Under the new bill, these exchanges are now obligated to maintain reserves in an amount sufficient to meet their obligations to digital asset customers. The legislation also prohibits the commingling of customer funds and mandates that providers submit a report to the state, including an auditor's attestation, alongside other necessary filings.
This move by the Texas legislature represents the latest effort by the state to regulate and enhance transparency in the cryptocurrency industry, ensuring the protection of consumers and promoting responsible business practices.
Lee Bratcher, president of the Texas Blockchain Council, hailed the bill for increasing transparency and maintaining a pro-business environment. However, it is not deemed sufficient to prevent fraud in the digital asset industry. In another move, Texas lawmakers unanimously voted to amend the state's bill of rights, granting residents the right to own, hold, and use digital currency alongside traditional forms of exchange.
Additionally, Texas senators have passed a bill that would remove tax incentives for virtual currency miners, pending consideration in the House. These legislative actions demonstrate Texas' commitment to regulating the cryptocurrency space while fostering innovation and protecting consumers.
