Relating to reporting and auditing requirements for digital asset service providers.
Summary
HB 4233 revises Texas law governing digital asset service providers by changing reporting and audit-related requirements in Chapter 160 of the Finance Code. The bill requires these providers to maintain a plan that allows each digital asset customer to view, at least quarterly, an accounting of any outstanding liabilities owed to the customer and the customer’s digital assets held in custody by the provider. It removes language that had also required an auditor to be able to access a pseudonymized version of customer information at any time.
The bill also updates the licensing framework for money transmitters by clarifying that digital asset service providers must comply with Chapter 160 requirements to obtain and keep any money transmission license under Chapter 152. At the same time, it repeals several provisions in Section 160.004, including subsections (d), (e), and (f), which previously contained additional reporting and audit-related requirements. The act takes effect September 1, 2025.
Impact
HB 4233 narrows and refines the regulatory obligations for digital asset service providers under the Texas Finance Code. It preserves customer-facing disclosure requirements while eliminating certain audit access provisions and related reporting mandates, and it ties compliance with Chapter 160 more directly to the ability to obtain and maintain a money transmission license. The bill affects digital asset custodians, crypto exchanges or similar service providers, and the Texas Department of Banking or other licensing authorities overseeing money transmission.
Sentiment
The available voting history suggests the bill was generally supported and not highly controversial. It passed the Texas House with strong bipartisan margins and also advanced in the Senate committee with an 11-0 favorable vote. The lack of committee transcript material limits insight into detailed debate, but the recorded votes indicate broad agreement on the need to update oversight rules for digital asset service providers.
Contention
The main point of potential contention appears to be the balance between consumer transparency and regulatory burden. The bill keeps quarterly customer accounting disclosures but removes the requirement for auditors to access pseudonymized customer information at any time, which may reflect concerns about privacy, operational complexity, or compliance costs. Any opposition likely centered on whether the repeal of subsections (d), (e), and (f) weakens auditability or reduces protections, while supporters likely viewed the changes as a targeted modernization of crypto-related licensing and reporting rules.