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, such as non-fungible tokens and stablecoins. The bill defines "contraband" to explicitly include these digital assets and introduces a new definition for "digital currency" as a representation of value recorded on a cryptographically secured distributed ledger. Additionally, it modifies the definition of "proceeds" to encompass any increase in value of digital currency gained from the commission of an offense. The bill also outlines specific procedures for the seizure and custody of these digital assets, requiring law enforcement to transfer seized digital currencies to secure wallets that are not connected to exchanges or networks.

Furthermore, the bill specifies that forfeiture proceedings for digital assets can be initiated in the county where the law enforcement agency that seized the property is located. It also mandates that regulated financial institutions must transfer any digital currencies or similar assets to secure wallets upon the service of a seizure warrant. The changes in law will only apply to property or proceeds seized on or after the effective date of the Act, which is set for September 1, 2025.