Bill > HB1666

This bill amends the Texas Finance Code to add Chapter 160, which regulates digital asset service providers (DASPs) that hold a money transmission license and either serve more than 500 digital asset customers in Texas or have at least $10 million in customer funds. The key provisions include: (1) prohibiting DASPs from commingling customer funds with their own funds or using customer funds to secure or guarantee transactions unrelated to the customer; (2) requiring DASPs to maintain customer funds in segregated or omnibus accounts; (3) mandating DASPs to provide quarterly account statements and allow auditors to access their records; and (4) authorizing the Texas Department of Banking to examine DASPs and suspend or revoke their money transmission licenses for violations. The bill takes effect on September 1, 2023.