Bill > SB2922

This bill establishes a comprehensive regulatory framework for creating and managing an oil-backed stablecoin in Texas, designed to leverage the state's oil production leadership and explore innovative digital financial technologies. The legislation requires issuers to obtain a special license from the Texas Department of Banking, mandates that each stablecoin be fully backed by a specific quantity of oil or oil products (maintained at a one-to-one ratio), and establishes strict oversight mechanisms including quarterly independent audits, consumer protection measures, and transparent reporting requirements. Issuers must work with state-approved oil company sub-custodians who can verify and allocate oil reserves, and must provide clear redemption options for stablecoin holders, either in cash proceeds or potentially direct oil product withdrawal. The bill aims to create a stable regulatory environment that can attract technological innovation, potentially increase tax revenue, and support Texas's energy industry by establishing a commodity-backed digital asset with robust safeguards. Key provisions include mandatory licensing, custodial reserve requirements, detailed reporting obligations, consumer protection standards, and provisions for administrative enforcement, with the regulatory framework set to take effect on September 1, 2025.