Texas House of Representatives Pass ‘PoR’ Bill
A law mandating that cryptocurrency exchanges have reserves “in an amount sufficient to fulfil all obligations to customers” was approved by the Texas House of Representatives on April 20.
The legislation would take effect on September 1st if the Senate approves it and the governor signs it.
The bill adds modifications to Section 160 of the Texas Finance Code. The amendments would prohibit providers of digital assets who serve more than 500 customers in the state and have at least $10 million in customer funds from combining the funds with any other form of operational capital and from using the funds for any other transactions besides the one that was requested by the customer.
In addition, the provider would have to hold reserves in an amount enough to immediately let all the possible withdrawals. It should also “create a plan” to allow auditors to review the information made available to the customer.
(With inputs from Shikha Singh)
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