Texas Passes Bill to Regulate Crypto Exchanges

• Texas passes a bill requiring exchanges to provide proof of reserves.
• The bill will rebuild trust in the crypto market.

On Thursday, the Texas House Representatives passed a bill requiring crypto exchanges to provide proof of reserves. A Republican state representative, Giovanni Capliglione, filed HB 1666. The bill is expected to rebuild trust in the crypto market. And also, the bill would bring some major regulations to the crypto market.

Multiple users have voted in favor of Texas’s decision. This is a major step to improve the transparency between crypto exchanges and their users. 

According to Texas, the report required to include the attestation by the crypto service provider of outstanding liabilities to the digital asset customers. This must establish in the Zero-knowledge encryption or another industry standard. And also, there should be evidence of the customer documented using zero-knowledge encryption or another industry standard. 

Moreover, the report recommended attaching a copy of the plan to allow customers and auditors to view the accounting of the digital assets at any time.

The bill by Texas has received a positive response from the crypto sectors. Instead of tightening the regulations, the bill improves the transparency of the exchange.