Texas ‘proof of reserves’ bill goes to Senate after House majority passes

texas will submit His Proof of Reserves bill moves to the Senate after receiving a majority in the House.

If the bill passes the Senate and is signed by Gov. Greg Abbott, it could become law by Sept. 1.

Here, the bill defines a digital asset firm as one that has more than 500 clients and manages $10 million in client funds. If the bill passes, client assets will be required to be preserved.

Exchanges will be required to submit reports to the Texas Department of Banking showing proof of client assets that can be certified by auditors.

The report will also include “unpaid liabilities” to the exchange’s customers.

The Ministry of Banking will have the power to revoke the license of digital asset companies if the regulations are not complied with.

The bill follows the collapse of a number of crypto lenders in 2022, including Voyager, Celsius, and BlockFi, as well as the collapse of FTX.

During each crash, customer assets are frozen for a period of time. The bill will ensure that reserves are maintained so that exchanges can meet all customer obligations.

Texas is also taking steps to cut incentives for bitcoin miners operating in the state. The bill must also pass the Senate and then be signed by the governor.

However, the bill faced opposition from bitcoin miners and the larger crypto community in the Lone Star State. Pierre Rocherd, Vice President of Research at Riot tweet The measure is “detrimental to rural employment and economic growth”.

Mr. teacher

According to BlockWorks

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