Legislation that could force exchange houses to hold reserves “in an amount sufficient to meet all obligations to customers” brought it one step closer to reality in the state of Texas. The bill passed a vote in the Senate and now only awaits the signature of the state governor.
State Bill 1666, which amends the Texas Finance Code, was voted on by the Senate on May 15 after passing the state House vote earlier this year. After three readings in the Senate, the text of the bill has not undergone significant changes compared to the previous draft.
Under the amendments, digital asset providers that serve more than 500 customers in the state and have at least $10 million in customer funds will not be able to mix customer funds with any other type of operating capital and use the funds from customers for any other transaction in addition to the original transaction demanded by the customer.
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Additionally, exchanges must maintain sufficient reserves to accommodate all potential withdrawals at any given time. Within 90 days after the end of each fiscal year, companies are required to submit a report to the General Directorate of State Banks on existing liabilities with customers.
If the provider does not meet the requirements, the state Banking Department would have the right to revoke its license.
Texas became an area for legislators who are proactive when it comes to cryptocurrency. Apart from the "Reserve Test" bill, the legislative bill for cut part of the incentives to cryptomining it was voted on by the Senate in April. At the same time, Texas legislators voted to amend the state's Bill of Rights and add a provision recognizing the right of people to ownhold and use digital currencies.
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