According to a recently adopted piece of legislation, cryptocurrency exchanges who wish to conduct business in Texas must keep enough reserves to perform all obligations to their consumers. House Bill 1666 (HB1666) was approved by the Texas legislature today to implement “proof of reserves” legislation mandating crypto exchanges to show audited or on-chain verification of assets at all times. The Texas House of Representatives submitted the bill to the state Senate last week. The bill’s discussion came to an end today with a vote. HB-1666 will also force businesses to segregate and account for customer monies separately, thereby prohibiting “commingling” or mixing user deposits with other digital assets, the service provider’s capital, or “other property that does not belong to the customer.”