The bill, S.B. No. 2174, amends the Finance Code to establish new reporting and auditing requirements for digital asset service providers in Texas. It requires these providers to create a plan that allows customers to view, at least quarterly, an accounting of any outstanding liabilities owed to them and the digital assets held in custody by the provider. The previous requirement for auditors to access a pseudonymized version of customer information has been removed.

Additionally, the bill updates the licensing requirements for digital asset service providers by changing the relevant subchapter from D to C in Chapter 152 of the Finance Code. It also repeals Sections 160.004(d), (e), and (f), which previously outlined additional reporting requirements. The new provisions will take effect on September 1, 2025.

Statutes affected:
Introduced: Finance Code 160.004, Finance Code 160.005 (Finance Code 160)