• Texas House Bill 1666 passed through the state Senate, requiring exchanges to maintain reserves “in an amount sufficient to fulfill all obligations to customers.”
• The bill now awaits only the governor’s signature and could become law in Texas.
• Texan lawmakers have voted to amend the state’s Bill of Rights, adding a provision recognizing the right of individuals to possess, retain and utilize digital currencies.
Bill passes through Senate
The legislation that could require exchanges to maintain reserves “in an amount sufficient to fulfill all obligations to customers” has made it one step closer to becoming law in Texas. On May 15, the bill passed a vote in the state Senate and now awaits only the governor’s signature.
Details of Bill
Texas House Bill 1666 amends the Texan finance code and restricts digital asset providers serving more than 500 customers in the state, with at least $10 million of customer funds from comingling customer funds with any other type of operational capital or using customer funds for any further transactions besides the original transaction demanded by the customer. Additionally, they must maintain reserves sufficient to accommodate all potential withdrawals at any given moment. Companies must submit a report within 90 days following each fiscal year’s conclusion regarding their existing liability to customers or risk having their license revoked by Texas Department of Banking.
Crypto Mining Incentives Limited
Apart from this proof-of-reserves bill, legislation was also moved forward that limits crypto mining incentives which was voted in by the Senate in April.
Recognizing Right To Utilize Digital Currencies
At the same time, Texan lawmakers have voted to amend their state’s Bill of Rights adding a provision recognizing an individual’s rightto possess, retain and utilize digital currencies as well as other cryptographically secured records.
Conclusion
Texas is proving itself as an area with progressive legislators when it comes cryptocurrency regulations. The proof-of-reserves bill is just one example of how they are working towards making sure exchanges are held accountable while also allowing people access and rights when it comes utilizing digital currencies.