H.B. No. 3110 amends the Texas Code of Criminal Procedure 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, 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 updates the procedures for law enforcement regarding the seizure and custody of such digital assets, mandating that they be transferred to secure wallets 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 outlines the responsibilities of regulated financial institutions in handling digital currencies during seizures, requiring them to transfer these assets to secure wallets under the control of law enforcement or the state attorney. 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.