• Texas Senate recently approved a legislation called ‘Proof of Reserve’ which requires digital asset providers to maintain enough money in reserve to cover all possible withdrawals.
• The bill needs the governor’s signature to become law and also requires companies in Texas to disclose their outstanding debt to customers within 90 days of the end of each fiscal year.
• In addition, Texas legislators have approved a change to the state’s Bill of Rights that would include a clause protecting people’s ability to own, keep, and spend virtual currency.
Proof Of Reserve Legislation
The legislation recently approved by the Texas Senate known as ‘Proof of Reserve’ now only needs the governor’s signature for it to become law. It would require digital asset providers with more than 500 customers in the state and over $10 million in customer funds to maintain reserves sufficient enough to fulfil all obligations towards customers. If service providers fail to meet these standards, their permit may be pulled by the government agency.
According to this proposed legislation, crypto exchanges are required to have enough money in reserve at all times so that they can cover any withdrawals requested by customers. Moreover, companies operating in Texas must disclose their outstanding debt owed towards customers within 90 days of each fiscal year’s end or face penalties from the Texas Department of Banking.
Crypto Mining Restrictions
Apart from proof-of-reserves law, politicians in Texas have also passed a measure restricting cryptocurrency mining incentives earlier this year. This is done with an aim towards ensuring security and safety for users who invest in digital assets.
Protection For Virtual Currency Ownership
Texas legislators have also made changes in its Bill of Rights that would protect people’s ability ownership over virtual currency along with keeping and spending them securely without facing any difficulties or restrictions imposed by authorities or third parties involved.
All these measures taken by lawmakers prove how proactive they are when it comes crypto trading laws and regulations ensuring user protection as well as secure investments done through digital assets such as Bitcoin and other cryptocurrencies present on various online exchanges operating across different states including Texas itself.