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Senate passes bill updating reporting and auditing rules for digital asset providers, adds crypto-kiosk consumer protections
Summary
House Bill 42 33 passed the Senate with floor amendments that add regulatory safeguards for cryptocurrency kiosks, including transaction holds, identification checks and operator registration.
The Texas Senate passed House Bill 42 33 on final passage after adopting a floor amendment that folded in protections for cryptocurrency kiosks alongside broader changes to reporting and auditing requirements for digital asset service providers.
Senator Bryan Parker, the floor sponsor, said the bill aligns Texas law with federal accounting requirements for digital-asset custodians and removes outdated auditing practices that required auditors to access anonymous customer financial data. "This creates a clear and enforceable accountability framework without unnecessary surveillance or complexity," Parker said while presenting the bill.
Amendment specifics: The adopted floor amendment drew from earlier legislation (SB 1705) and added protections aimed at reducing fraud at cryptocurrency kiosks. Provisions cited on the floor include mandatory identification swipes for kiosk transactions, 72-hour holds in certain circumstances, mandatory operator registration, quarterly reporting of kiosk locations, cooperation requirements with law enforcement, and consumer risk disclosures stating that virtual currency transactions are irreversible.
Why it matters: Members said the kiosk protections respond to scams that have targeted elderly and vulnerable Texans who lost funds after being coerced into transferring money via unregulated machines. The floor sponsor described the amendment as a last-opportunity measure to close regulatory gaps.
Vote and procedure: The Senate adopted the amendments and passed the bill on third reading. The Secretary recorded 31 ayes and 0 nays on final passage.
Limits: The floor discussion noted that some items from a fuller bill (for example, caps on fees) were not included because they were not germane to the vehicle. The amendment focused on operational safeguards, disclosures and enforcement tools for kiosk operators.
Next steps: With Senate passage, HB 42 33 advances; implementing rules and enforcement mechanisms will be left to the responsible state agencies and regulators as specified in law.
