Crypto Exchanges in Texas Must Now Show Proof of Reserves According to New Bill

The Texas House of Representatives has taken a step towards rebuilding trust in the crypto industry by passing a bill that would require crypto exchanges to prove they have sufficient reserves to back up their assets. The bill applies to crypto exchanges that serve more than 500 customers in the state or have at least $10 million worth of customer funds. If passed into law, it would mandate that these exchanges maintain reserves that are enough to meet all obligations to digital asset customers. They would also have to provide a quarterly accounting of liabilities owed to customers, and make sure an auditor can access and view the same information provided to customers at any time. The bill also contains rules that would prevent commingling of funds, using customer funds to secure transactions other than those for the customer, or holding customers’ funds in a way that would make it difficult for them to withdraw or invest. The bill still needs to pass the state’s Senate before it can become law, but its passage represents an important step towards ensuring the stability and security of the digital asset market.

Clever Robot News Desk 24^th April 2023