The U.S. Texas House of Representatives approved the “Proof of Reserves” bill on April 20, requiring cryptocurrency exchanges to maintain reserves “sufficient to meet all obligations to customers.” If the bill passes the Senate and is signed by the governor, it could become law by Sept. 1. The bill introduces amendments to the Texas Finance Code under which digital asset providers serving more than 500 clients in the state and having at least $10 million in client funds would be restricted from commingling client funds in any Other types of operating funds, where client funds are used for any other transaction requested by the client other than the original transaction. In addition, the provider must hold a sufficient amount of reserves to allow all possible withdrawals immediately. It should also "establish a program" to allow auditors to review information provided to clients. On the 90th day after the end of each financial year, the exchange is required to submit a report to the National Banking Department on its outstanding liabilities to clients. The report shall also include the auditor's certification. If a supplier fails to comply with the requirements, the Banking Department will have the right to revoke its license.
Kikyo