• Texas Senate has passed a bill obliging exchanges to maintain reserves “in an amount sufficient to fulfill all obligations to customers”.
• The Texas Department of Banking would have the right to revoke the license of providers who fail to comply with the requirements.
• The state also moved to limit crypto mining incentives and amended its Bill of Rights, recognizing individuals’ rights to possess digital currencies.
Texas Passes Proof-of-Reserve Bill
The Texas Senate has passed a bill that would require exchanges in the state to maintain reserves sufficient enough “to fulfill all obligations to customers”. This bill is now awaiting the governor’s signature before it becomes law.
Requirements for Digital Asset Providers
Under the amendments, digital asset providers serving more than 500 customers in Texas, with at least $10 million of customer funds, must keep customer funds separate from other operational capital and not use them for any transactions besides those requested by customers.
Consequences for Noncompliance
Providers who fail to comply with these requirements will be subject to having their license revoked by the Texas Department of Banking.
Other Crypto Regulations in Texas
Apart from this proof-of-reserves bill, the Texan Senate also voted to limit crypto mining incentives and amend its Bill of Rights, recognizing individuals’ rights to possess digital currencies.
Final Step Before Becoming Law
The proof-of-reserve bill only needs the governor’s signature before becoming law in Texas.