Cryptocurrency exchanges intending to do business in Texas will have to maintain adequate reserves to meet all obligations to their clients, the bill states.
The bill has passed through the Texas House of Representatives and the state Senate. It now goes to the governor for consideration.
The amendments would be added to the Texas Finance Code and affect digital-asset providers serving more than 500 clients in the state and holding at least $10 million of customer assets.
It is proposed that they be prohibited from commingling user deposits with any other funds, capital, or “other property,” and from using them for any purpose other than client transactions.
The bill also requires exchanges to maintain a sufficient level of reserves and to provide the local regulator with the appropriate reporting. Otherwise, licences could be revoked.
In the authors’ view, the initiative would increase transparency and sustain a ‘light regulatory stance and a business-friendly environment’.
“Enacting this law would make Texas the safest place in the country to trade cryptocurrencies. Platforms that have chosen to operate in the state now meet higher standards, giving investors and consumers confidence that their money and assets are safe,” said Cody Carbon, vice president of Digital Chambers, quoted by Decrypt.
Earlier, Representative Giovanni Caprileone proposed a bill affirming the right of local residents to use digital assets. The measure would need to pass the House of Representatives, the Senate, and a referendum.
Earlier in April, Senator Bryan Hughes and Representative Mark Dorasio proposed to create the Texas state digital currency, backed by gold.