On April 20, the Texas House of Representatives passed a bill that would require cryptocurrency exchanges to hold reserves “in an amount sufficient to meet all obligations to customers”.
If the bill passes the Senate and receives the governor’s signature, it would become law on September 1..
The bill introduces changes to the Texas Financial Code, specifically in section 160. Under the amendments, digital asset providers that serve more than 500 customers in the state and hold at least $10 million in customer funds would be prohibited from mixing customer funds with any other type of operating capital and using customer funds for any other transaction different from the original transaction requested by the client.
Besides, the provider would have to hold reserves of a sufficient amount to immediately allow all potential withdrawals. You should also “create a plan” to allow auditors to review the information made available to the client..
Before 90 days have elapsed from the end of each fiscal year, the exchange will have to submit a report on its outstanding obligations to clients to the State Banking Department. The report must also include a certificate from the auditor.
If the provider fails to meet the requirements, the Banking Department would have the right to revoke its license..
Following the 2022 market crashes, Texas took a cautious stance towards cryptocurrencies. On April 12, the state Senate passed a bill aimed at removing incentives for local cryptocurrency miners.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
