Texas Pushes Crypto Regulation
The US state of Texas, one of the most developed regions in the field of cryptocurrencies, especially in mining, has passed a new law. The law, which requires crypto businesses in the state to provide proof of reserves, will also ensure customer funds are segregated.
Texas State Pushes Crypto Regulation
The Texas Blockchain Council announced that the Texas House of Representatives passed House Bill 1666. This bill requires digital asset providers in the state to provide proof of reserve and separate client funds from their own funds.
The bill, which also has strong support from Texas Rep. Giovanni Capriglione and Senator Tan Parker, still needs to be signed into law by Gov. Greg Abbott for final approval. In addition, the draft law also stipulates that the figures to prove the reserves are checked by an auditing company. In addition, a Reserve Evidence Report is submitted annually and quarterly to the Texas Banking Commission.
Proof of reserve and separate customer money management for crypto companies
The institution most involved in drafting this bill, abbreviated HB 1666, was the Texas Blockchain Council. The council, which includes well-known and experienced names in the sector, drafted the bill. In addition, many positive and negative ideas were collected in the form of feedback and forwarded to the responsible authorities. In addition to the two congressmen, well-known industry figures such as Nic Carter, Noah Buxton and Clayton Lowery also worked hard and contributed to the passage of the law.
Texas has recently emerged as a place that excels in cryptocurrency mining . In the US state, large mining companies such as Marathon and RIOT operate thousands of devices. As you will recall, cryptocurrency exchanges started producing a proof-of-reserve report after the FTX bust in November. The aim behind this was to reassure users and investors. Exchanges like OKX and Kucoin also joined in this storm fueled by the Binance exchange.