Texas Passes New Bill: Crypto Exchanges Must Provide Proof Of Reserves

Texas Lays Down Proposal to Allow Bitcoin as an Authorized State Investment
Source: Pelicoin

Texas has just passed a new bill requiring crypto exchanges to provide their proof of reserves. The Texas House of Representatives passed the bill Thursday, marking a major step in transparency between exchanges and their users.

The new bill requires a digital asset service provider, not later than the 90th day after the end of each fiscal year, to file a report with the Texas Department of Banking. The reports, according to the TDB, must include the following:

  • An attestation by the digital asset service provider of outstanding liability to digital asset customers, documented using zero-knowledge encryption or a similar industry standard
  • evidence of customer assets held by the person, documented using zero-knowledge encryption or a similar industry standard
  • an attestation by an auditor that the information in the report is true and accurate
  • a copy of the provider’s plan to allow auditors and customers to view the accounting of digital assets quarterly, as well as the customer’s digital assets at any time.
Texas Takes a Stand for Bitcoin Rights with Introduction of New Bill
Source: Minerset

Multiple users have shared their approval of the Texas House of Representatives’ latest decision. It approves further transparency of various crypto exchanges, rather than heavily regulating or banning them altogether.