The Texas House of Representatives has approved the "Proof of Reserves" bill

ChainCatcher News, the 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 in the Senate and is signed by the governor, it could become law by September 1.

The bill introduces amendments to the Texas Financial Code, under which digital asset providers serving more than 500 customers and holding at least $10 million in customer funds will be restricted from mixing customer funds with any other type of operating funds and using customer funds for any transactions other than the original trades requested by customers. Additionally, providers must hold sufficient reserves to immediately cover all potential withdrawals.

It should also "develop a plan" to allow auditors to review the information provided to customers. Within 90 days after the end of each fiscal year, exchanges are required to submit a report to the Department of Banking regarding their outstanding debts to customers. This report should also include an auditor's certification. If a provider fails to comply with the requirements, the Department of Banking will have the authority to revoke its license. (Source link)