The 88th legislative session of the Texas government is set to end on May 29 without resolving certain bills related to the digital asset space. One such bill, Senate Bill 1751, which aims to impose restrictions on crypto mining firms, was moved to the Committee on State Affairs on April 24 after being passed in the state senate. However, there has been no progress on this bill, and it is unlikely to be addressed until the next regular session in January 2025, as the Texas Legislature meets every other year. As a result, crypto companies will likely continue to benefit from operating in Texas without the proposed restrictions.
Two other crypto-related bills have already been passed by both chambers of the Texas Legislature and are awaiting approval or veto from Governor Greg Abbott. House Bill 1666, known as a proof-of-reserves bill, seeks to require exchanges to maintain sufficient reserves to fulfill customer obligations and submit reports to the Texas Department of Banking. House Bill 591, on the other hand, allows Bitcoin miners to use flare gas emissions to power their operations. These bills will become law if the governor does not actively veto them within the specified timeframes.
Texas legislation on crypto firms
Governor Abbott has previously identified himself as a supporter of crypto law proposals but has not indicated his stance on the recent legislation. The governor has a window of 20 days to issue a veto for bills sent to his desk within 10 days of the regular session ending, suggesting that House Bill 591 may already be considered state law. Abbott has until mid-June to take action on House Bill 1666.
The Memorial Day holiday may extend the time allowed, giving the governor an opportunity to sign the two bills into law. Texas has faced criticism at the federal level for its large number of mining firms and concerns over energy consumption and the environment. Additionally, lawmakers in the state are working on legislation to amend the Texas Bill of Rights to recognize residents’ rights to possess, retain, and use digital currencies, which was referred to the Senate Committee on Business and Commerce on May 11.
