Texas Passes Bill on Cryptocurrency

So, Texas has now passed a bill that requires digital asset service providers to provide proof-of-reserves. Also, crypto exchanges are forbidden from commingling of customer funds with their own.

S.B. 770 creates Chapter 160, Finance Code, and applies regulations to digital asset service providers in Texas to ensure consumer funds are secure and protected. The bill applies to digital asset service providers that serve more than 500 customers in the state or have at least ten million dollars in customer funds. Outlined in the bill language are provisions for storage of funds, use of funds, transparency, reporting, and empowering the Texas Department of Banking for the purpose of enforcement.

As proposed, S.B. 770 amends current law relating to the commingling of funds by digital asset service providers. The law applies to a digital asset service provider in Texas who has more than 500 customers or more than $10 million in customer funds.

https://capitol.texas.gov/tlodocs/88R/analysis/html/SB00770I.htm