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 increases in the value of digital currency gained from criminal activities. The bill also outlines specific procedures for law enforcement regarding the seizure and custody of these digital assets, including the requirement to transfer them 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 allows regulated financial institutions to transfer digital currencies to secure wallets upon the service of a seizure warrant. The changes in law will apply only to property or proceeds seized on or after the effective date of the Act, which is set for September 1, 2025. This legislation aims to modernize asset forfeiture laws to account for the growing prevalence of digital currencies in criminal activities.