S.B. No. 1498 amends the Code of Criminal Procedure in Texas to include provisions for the civil asset forfeiture of digital currencies and similar properties. The bill defines "contraband" to explicitly include digital currencies, non-fungible tokens, and stablecoins, alongside other forms of property used in the commission of various felonies. It introduces a new definition for "digital currency" as a digital representation of value recorded on a cryptographically secured distributed ledger. Additionally, the bill modifies the definition of "proceeds" to encompass increases in the value of digital currency gained from criminal activities.

The bill also outlines specific procedures for the seizure and custody of digital assets by law enforcement. It mandates that if a peace officer seizes digital currency, non-fungible tokens, or stablecoins, they must transfer these assets to a secure wallet that is not connected to any exchange or network, ensuring that only the law enforcement agency or the attorney representing the state can access it. Furthermore, the bill stipulates that forfeiture proceedings for these digital assets can be initiated in the county where the law enforcement agency that conducted the seizure is located. The changes will take effect on September 1, 2025, and will only apply to property or proceeds seized after that date.