88(R) HB 1666 - Enrolled version - Bill Text
 
 
  H.B.  No.  1666
 
 
 
 
AN ACT
  relating to the commingling of funds by digital asset service
  providers; providing an administrative penalty.
               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
               SECTION  1.    Subtitle E, Title 3, Finance Code, is amended by
  adding Chapter 160 to read as follows:
  CHAPTER 160. DIGITAL ASSET SERVICE PROVIDERS
               Sec.  160.001.    DEFINITIONS. In this chapter:
                           (1)    "Commission"  means the Finance Commission of
  Texas.
                           (2)    "Customer funds" means the digital assets, fiat
  currency, or other property deposited by a digital asset customer.
                           (3)    "Department" means the Texas Department of
  Banking.
                           (4)    "Digital asset" means a natively electronic asset
  that confers economic, proprietary, or access rights and is
  recorded or stored in a blockchain, cryptographically secured
  distributed ledger, or similar technology, and includes:
                                       (A)    a digital asset that the laws of any country
  consider to be legal tender; or
                                       (B)    virtual currency as defined by Section
  12.001, Business & Commerce Code.
                           (5)    "Digital asset customer" means a person who
  deposits fiat currency or a digital asset with a digital asset
  service provider.
                           (6)    "Digital asset service provider" means an
  electronic platform that facilitates the trading of digital assets
  on behalf of a digital asset customer and maintains custody of the
  customer's digital assets.
               Sec.  160.002.    ADMINISTRATION.  The department shall
  administer this chapter.
               Sec.  160.003.    APPLICABILITY. (a) This chapter applies to a
  digital asset service provider doing business in this state that:
                           (1)    holds a money transmission license under
  Subchapter D, Chapter 151; and
                           (2)    either:
                                       (A)    serves more than 500 digital asset customers
  in this state; or
                                       (B)    has at least $10 million in customer funds.
               (b)    This chapter does not apply to:
                           (1)    a bank, as defined by Section 31.002; or
                           (2)    an entity excluded by commission rule or by order
  of the banking commissioner based on a finding that the entity is:
                                       (A)    not required to hold a money transmission
  license under Subchapter D, Chapter 151; or
                                       (B)    not subject to the requirements of this
  chapter.
               Sec.  160.004.    DUTIES OF DIGITAL ASSET SERVICE PROVIDERS.
  (a) Except as provided by this chapter, a digital asset service
  provider may not:
                           (1)    commingle customer funds with funds belonging to
  the digital asset service provider, including the digital asset
  service provider's:
                                       (A)    operating capital;
                                       (B)    proprietary accounts;
                                       (C)    digital assets;
                                       (D)    fiat currency; or
                                       (E)    other property that is not customer funds;
                           (2)    use customer funds to secure or guarantee a
  transaction other than a transaction for the customer contributing
  the funds; or
                           (3)    maintain customer funds in such a manner that a


Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()