April 21 (Cointime) - On April 20, the Texas House of Representatives approved a bill, known as HB1666, that mandates cryptocurrency companies to demonstrate their possession of adequate assets. 

The bill stipulates that companies may need to maintain adequate reserves to cover all user obligations, including cryptocurrency deposits and balances.

Additionally, these companies may be required to produce quarterly accounting reports for their customers and auditors, outlining outstanding liabilities owed to customers and the quantity of cryptocurrency held in reserve by the company. Furthermore, the bill requires companies to submit a report containing additional details to the Texas Department of Banking no later than 90 days after the close of each fiscal year.

The bill's provisions share similarities with the proof-of-reserve reports that prominent exchanges like Coinbase, Binance, and Kraken already produce. However, the language of the bill implies that companies must furnish personalized reports to individual users, rather than providing company-wide reports.

These regulations apply to digital asset service providers catering to over 500 Texas-based users of such services, or those holding at least $10 million in customer funds. The rules do not extend to banks or companies that are not required to possess money services licenses.

The bill has not received approval from Texas' senate and has not been enacted into law.