Relating to reporting and auditing requirements for digital asset service providers.

SB 2174 requires digital asset service providers (like cryptocurrency exchanges) operating in Texas to provide customers with quarterly reports detailing outstanding liabilities owed to them and the digital assets held in custody. It also mandates that auditors can access pseudonymized customer data at any time for verification purposes. The bill repeals previous reporting requirements (sections 160.004(d)-(f) of the Finance Code) and updates licensing rules for money transmission. This legislation, pending approval, will take effect September 1, 2025.