AUSTIN, Texas, January 2023 — Representative Giovanni Capriglione has filed HB 1666 to protect Texas consumers’ investments in digital assets.
“Over 8.5 million Texans have invested in cryptocurrencies and other digital assets, the vast majority of which are held by third party custodial account holders which facilitate the trade,” said Representative Capriglione. “Recently, multiple companies have betrayed the trust of their consumers by comingling investor funds with corporate assets, leading consumers to lose billions in their investments. HB 1666 would make it clear that any company that wishes to hold digital assets of Texas residents must verify to the Texas Department of Banking that they do not, and will not, comingle consumer funds with corporate assets. Additionally, these companies must prove that they are maintaining adequate reserves so consumers can access their funds.”
Representative Capriglione continued, “This bill is a product of months of conversations with stakeholders, consumer advocates, and many of my colleagues. I am proud that we have the support of the Texas Blockchain Council and can work together to restore consumer confidence in the blockchain economy.”
Lee Bratcher, President of the Texas Blockchain Council, joined Representative Capriglione by saying “The poor risk management practices demonstrated by multiple digital asset exchanges have severely damaged our industry. We at the Texas Blockchain Council are committed to ensuring custodial account holders do not comingle consumer funds and maintain adequate proof of reserves. The Texas Blockchain Council will continue to advocate for safe and secure methods of custody, including our ongoing educational efforts to promote self-custody of digital assets. We thank Representative Capriglione for filing HB 1666 and look forward to continuing to work with him in the 88th Legislative Session.”
Representative Capriglione concluded, “As a leader on technology issues and the Chairman of the Innovation & Technology Caucus of the Texas Legislature, I look forward to working with my House and Senate colleagues on the vital task of ensuring Texas remains on the forefront of safe, secure, and transparent blockchain innovation.”