A BILL TO BE ENTITLED

AN ACT

relating to digital currencies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 15, Business & Commerce Code,

is amended by adding Chapter 662 to read as follows:

CHAPTER 662. DIGITAL CURRENCIES

Sec. 662.0001. DEFINITIONS. In this chapter:

(1) "Digital currency" means an electronic form of

currency that can be denominated to sovereign currency and employs

the use of a distributed ledger.

(2) "Digital wallet" means an electronic device or

online service that allows a person to pay for transactions using

digital currency.

(3) "Distributed ledger" means a structured data

representation that grows only by appending new data, authenticates

users with strong cryptography, and leverages economic incentives

to encourage users to manage and secure updates.

(4) "Verified identity digital currency" means a

digital currency that allows the true identities of the sender and

the receiver to be known before a person has access to another

person's digital wallet.

Sec. 662.0002. VERIFICATION OF IDENTITY REQUIRED. (a)

Before accepting payment by a digital currency, a person must

verify the identity of the person sending payment. A person is not

required to verify the identify of a person sending payment if the

payment is sent by a verified identity digital currency.

(b) This state may not use a digital currency that is not a

verified identity digital currency.

Sec. 662.0003. VERIFIED IDENTITY DIGITAL CURRENCY

AWARENESS. (a) The Texas Department of Banking, Credit Union

Commission, Texas Department of Public Safety, and State Securities

Board shall collaborate to encourage the use of verified identity

digital currencies.

(b) The agencies listed in Subsection (a) shall:

(1) provide tools for people to distinguish a verified

identity digital currency from digital currencies that allow users

to remain anonymous;

(2) educate law enforcement agencies on digital

currencies; and

(3) promote the use of verified identity digital

currencies.

(c) The Finance Commission of Texas, Credit Union

Commission, Texas Department of Public Safety, and State Securities

Board shall adopt rules to implement this section.