On April 20th, the Texas House of Representatives passed a bill that mandates crypto exchanges to maintain reserves that are enough to fulfill their obligations to clients.
This bill would amend the Texas Financial Code, specifically Section 160.
Virtual Asset Service Providers (VASPs) operating across the state and serving more than 500 customers while holding at least $10 million in customer funds will not be allowed to combine user assets with their own working capital.
Moreover, customer funds cannot be utilized for any other transaction except the one requested by the customer.
Cryptocurrency trading platforms will also need to maintain reserves in ample quantities to withdraw all funds immediately.
The bill also includes the creation of an auditing plan to investigate information provided to clients.
Within 90 days of the end of each financial year, the exchange must submit a report on customer obligations to the State Banking Department, which must be certified by an auditor.
If a cryptocurrency service provider does not comply with the requirements, the department has the power to revoke its license.
If the bill is passed by the Senate and signed by the state governor, it will come into effect on September 1st.
In April, local authorities canceled several tax incentives for miners, while Texas lawmakers proposed a state digital currency backed by gold in the same month that would be independent of the US Federal Reserve System (FRS).