Texas has passed a law granting law enforcement the authority to seize digital assets, with the measure set to take effect on Sept. 1.
On June 20, Texas lawmakers passed Senate Bill 1498, a bipartisan law that gives law enforcement the power to seize digital assets like Bitcoin (BTC), NFTs, stablecoins, and other cryptocurrency tied to criminal activity. The bill received full approval and is set to take effect on Sept. 1.
Under the new law, digital assets can be seized if they were used in or gained from crimes such as drug trafficking, fraud, theft, organized crime, or human trafficking. Any increase in the value of the seized assets between the time it was obtained and the time it is seized can also be claimed by the state.
Law enforcement would be required to move any seized assets tied to these crimes into a secure, offline wallet that can only be accessed by the agency or the state’s attorney. The forfeiture case would be filed in the county where the seizing agency is based.
You might also like: Texas approves Bitcoin reserve bill, awaits governor’s signature
With SB1498, lawmakers bring digital property under the same civil asset forfeiture rules that already apply to cash, vehicles, and real estate used in criminal acts. Lawmakers said SB1498 addresses gaps in current law and is needed as digital assets increasingly play a role in financial crimes.
Meanwhile, Arizona is also updating its laws to expand the state’s forfeiture laws to include digital assets.
SB1498 arrives alongside SB21, signed by Texas Governor Greg Abbott on June 22, making Texas the first state to allocate public funds and create a dedicated framework specifically for holding Bitcoin. Managed separately from the general treasury, the reserve aims to strengthen the state’s financial resilience and serve as a hedge against inflation.
Additionally, Texas has become the third state in the US to pass a Bitcoin reserve law, following Arizona and New Hampshire.
You might also like: Lone Star ledger: Texas clears final hurdle for Bitcoin reserve fund
Read the full article here
