Texas Senate Passes Proof of Reserves Bill: What It Means for Crypto

The Texas legislature passed a bill this week requiring cryptocurrency exchanges to provide a “proof of reserves,” the latest move by the Lone Star State to embrace digital assets. This legislation signifies Texas's growing role in the cryptocurrency landscape.

The Senate has passed Senate Bill 21, a measure establishing the Texas Strategic Bitcoin Reserve. This makes Texas the third U.S. state to adopt Bitcoin as part of its financial strategy.

Key Provisions of the Proof of Reserves Bill

Legislation that could require exchanges to maintain reserves “in an amount sufficient to fulfill all obligations to customers” has made it one step closer to becoming law in Texas. The House voted in favor of Senate Bill 121 which would establish a Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency.

SB 21 establishes and designates the Texas Bitcoin Reserve as a “special fund outside the state treasury”. The bill gives Texas Comptroller, Glenn Hegar, “custody and control” over the reserve. This strategic move underscores Texas' commitment to becoming a hub for cryptocurrency innovation.

Impact on Cryptocurrency Exchanges

The “proof of reserves” requirement aims to increase transparency and build trust in cryptocurrency exchanges operating in Texas. This could lead to greater adoption and investment in digital assets within the state.

With BTC potentially reaching $ 108,818.21, the implications of this legislation could be substantial for the future of cryptocurrency in Texas and beyond.

Stay tuned for further updates on this developing story and its impact on the cryptocurrency market.