A significant cryptocurrency bill that compels all digital asset exchanges to submit proof-of-reserves has been approved by the Texas House of Representatives.
The Texas House of Representatives enacted a significant law on Thursday, April 20, requiring cryptocurrency exchanges to give proof-of-reserves for accountability and to provide transparency for their users. The new law mandates that the supplier of digital asset services make a report to the Texas Department of Banking no later than 90 days following the conclusion of each fiscal year.
Texas Enacts New Crypto Legislation
The report must include an attestation from the crypto service provider of any unpaid debts owed to users of digital assets, in accordance with the published bill. This attestation shall be established using zero-knowledge encryption or another applicable industry standard.
In addition, there should be documentation of any client assets held by the individual utilizing zero-knowledge encryption or a comparable industry standard. An auditor’s certification verifying the veracity of the report’s information should be included.
The report also suggests including a copy of the provider’s plan so that auditors and clients can view the quarterly accounting of digital assets as well as clients’ digital assets whenever they want.
Crypto Legislation: A Positive Development?
The cryptocurrency industry has responded favorably to the Texas House of Representatives’ latest action. It offers the go-ahead for increased transparency for a range of exchanges rather than strictly regulating or outright banning cryptocurrency exchanges.
Market players believe that since it allows exchanges to function freely, this might eventually result in a favorable scenario for Bitcoin and other cryptocurrencies.
After the measure was approved, the price of Bitcoin briefly increased by 0.32% but then progressively decreased to earlier lows. At the moment, the price of Bitcoin is about $28,321, representing a decrease of 2.97% over the last 24 hours.
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