Texas, Louisiana Enact Digital Asset Licensing Legislation

In recent weeks, Texas and Louisiana became the latest states to enact legislation establishing licensure requirements for digital asset service providers.

In June, Texas enacted HB 1666, which adds practice restrictions to digital asset service providers, defined as electronic platforms that facilitate the trading of digital assets on behalf of a digital asset customer and maintain custody of the customer's digital assets. Specifically, HB 1666 will require digital asset service providers to verify in an annual report to the Texas Department of Banking that they are, among other things:

• Maintaining reserves sufficient to fulfill their obligations to consumers;
• Ensuring customers are able to withdraw their funds at any time;