The House of Representatives of Texas passes a law that requires the detection of reserves for crypto exchanges

The House of Representatives of Texas passes a law that requires the detection of reserves for crypto exchanges

On April 21, the House of Representatives from Texas passed a draft law that prescribes the exchange of cryptocurrencies to keep sufficient reserves to meet the payment obligations of its customers.

According to the announcement of the Texas House of Representatives, the “HB 166” law draft submitted by the Member of the State Giovanni Capriglione assumed by a majority of 150 members who aimed to restore the confidence in the market by requiring evidence of the reserves to exchange digital asset. ”

Texas aims to protect the citizens

Perianne Boring, founder and CEO of the Chamber of Digital Commerce, congratulates Rep. Capriglione and the House of Representatives of Texas to adopt a law that aims to protect citizens from financial problems caused by stock exchanges, and at the same time a critical problem such as evidence of reserves.

"Congratulations to Rep. Giovanni Capriglione (R-TX) and the House of Representatives of Texas to adopt HB 1666, which aims to protect the investments of the Texas consumers in digital assets and address the critical problem of evidence of reserves for stock exchanges.

She also explained that the approval of the draft law HB 166 "is an essential step to ensure the stability and security of the market for digital assets". Similarly, she emphasized how important it was that the exchanges have to provide a reserve detection in order to prove their ability to cover all user money.

"The requirement for the detection of the reserves in this draft law is exactly what should be required by depot banks in order to prove that they have sufficient assets to cover all customer deposits."

The requirement of the reserve detection would prevent exchanges for fraud or fraud, such as FTX, which is classified as one of the largest financial fraud in the history of the United States, through which Maxine Waters have lost thousands of American citizens of dollars.

The detection of the reserves is a process with which a cryptocurrency exchange proves that it has sufficient means to cover customer deposits. This transparency contributes to the protection of customer assets and can strengthen trust in the stock exchange.

In contrast, traditional banks use a partial reserves system in which they are not obliged to keep the full amount of customer deposits in reserve, which can lead to liquidity problems in times of financial burdens. It is true that banks destabilize less likely than smaller stock exchanges due to their size and supervision, but both systems can be exposed to risks in extreme events or crises.

Texas becomes a regulatory model

Thanks to this new law, the state of Texas has become a regulatory model for other US courtiness that may be replicated or used as a template to improve the regulations that continue to be a problem for the exchange of cryptocurrencies.

As reported by cryptopotato recently Bittrex, one of the largest and oldest US exchanges, announced the closure of your company, since the uncertain regulatory environment in the country has become an obstacle for such companies.

Binance and Coinbase are other stock exchanges that, due to the lack of clear laws that enable smooth operation, had problems with the supervisory authorities and reached the point at which they consider to leave the country.

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