Amend HB 4233 (senate committee report) as follows:

(1)  In the recital to SECTION 1 of the bill (page 1, line 24), strike "Section 160.004(c), Finance Code, is" and substitute "Sections 160.004(b) and (c), Finance Code, are".

(2)  In SECTION 1 of the bill, before amended Section 160.004(c), Finance Code (page 1, between lines 25 and 26), insert the following:

(b)  In addition to any other requirements under state law, a digital asset service provider shall maintain customer funds not subject to the requirements of Chapter 152 [151]:

(1)  in separate accounts for obligations to each digital asset customer; or

(2)  in an omnibus account that only contains digital assets of digital asset customers and in which digital assets of digital asset customers are not strictly segregated from each other.

(3)  In the recital to SECTION 2 of the bill (page 1, line 37), strike "Section 160.005(a)" and substitute "Section 160.005".

(4)  In SECTION 2 of the bill, in amended Section 160.005(a), Finance Code (page 1, line 39), before "(a)", insert "Sec. 160.005. REQUIREMENTS FOR MONEY TRANSMISSION LICENSE.".

(5)  In SECTION 2 of the bill, following amended Section 160.005(a), Finance Code (page 1, between lines 45 and 46), insert the following:

(b)  The department may suspend and revoke a money transmission license issued under Subchapter C [D], Chapter 152 [151], to a digital asset service provider if the provider violates the requirements of this chapter.

(c)  The department may impose any penalty under Subchapter I [H], Chapter 152 [151], that the department may impose on a person who violates that chapter on a digital asset service provider who violates this chapter.

(d)  The commissioner may examine or investigate a digital asset service provider in the same manner as allowed under Subchapter B [G], Chapter 152 [151].  Information disclosed to the commissioner in connection with an examination or investigation under this section is confidential information and subject to the provisions regarding confidentiality under Subchapter B [G], Chapter 152 [151].

(6)  Add the following appropriately numbered SECTION to the bill:

SECTION ____.  Section 160.003, Finance Code, is amended to read as follows:

Sec. 160.003.  APPLICABILITY. (a) This chapter applies to a digital asset service provider doing business in this state that:

(1)  holds a money transmission license under Subchapter C [D], Chapter 152 [151]; and

(2)  either:

(A)  serves more than 500 digital asset customers in this state; or

(B)  has at least $10 million in customer funds.

(b)  This chapter does not apply to:

(1)  a bank, as defined by Section 31.002; or

(2)  an entity excluded by commission rule or by order of the banking commissioner based on a finding that the entity is:

(A)  not required to hold a money transmission license under Subchapter C [D], Chapter 152 [151]; or

(B)  not subject to the requirements of this chapter.

(7)  Renumber remaining SECTIONS of the bill accordingly.