H.B. No. 3110 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, and introduces a new definition for "digital currency" as a digital 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 the seizure and custody of these digital assets, mandating that law enforcement agencies 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 allows regulated financial institutions to transfer any digital currency or similar assets to a secure wallet 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.