89R15933 SRA-F
By: Parker S.B. No. 2922
A BILL TO BE ENTITLED
AN ACT
relating to the issuance and regulation of an oil-backed
stablecoin; authorizing a fee; authorizing an administrative
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Texas Oil-Backed
Stablecoin Act.
SECTION 2. (a) The legislature finds that:
(1) Texas is a global leader in oil production,
refining, and innovation in energy markets;
(2) stablecoins and other blockchain-based digital
assets present opportunities for more efficient, transparent, and
cost-effective financial transactions, enhancing competitiveness
in global markets;
(3) a stablecoin fully backed by oil or oil-derived
products can expand investment opportunities, increase tax
revenue, attract technology development, and support the state's
energy industry; and
(4) it is in the public interest to establish a stable
regulatory framework for a commodity-backed stablecoin issued in
this state.
(b) The purpose of this Act is to:
(1) authorize and regulate the issuance of a
commodity-backed stablecoin anchored by oil or oil products;
(2) ensure that each stablecoin issued under this Act
is fully backed by, and redeemable for, a defined quantity of oil or
oil products;
(3) provide oversight, licensing, consumer
protection, and transparency measures to safeguard the public
interest; and
(4) facilitate responsible innovation and economic
growth within this state.
SECTION 3. Subtitle Z, Title 3, Finance Code, is amended by
adding Chapter 282 to read as follows:
CHAPTER 282. OIL-BACKED STABLECOIN
Sec. 282.001. DEFINITIONS. In this chapter:
(1) "Custodial reserve" means the pool of oil or oil
products held in trust or under sub-custodial contracts for the
sole purpose of fully backing all units of the oil-backed
stablecoin in circulation.
(2) "Department" means the Texas Department of
Banking.
(3) "Finance commission" means the Finance Commission
of Texas.
(4) "Issuer" means any person authorized by the
department to create, manage, or redeem an oil-backed stablecoin
under this chapter.
(5) "Oil-backed stablecoin" means a stablecoin
authorized under this chapter that is redeemable for a specific
quantity of oil or refined oil products measured in British thermal
units or another appropriate standard specified by the department.
(6) "Oil company sub-custodian" or "sub-custodian"
means a state-approved or licensed oil producer, refiner, or
storage entity that allocates crude or refined product to the
custodial reserve under this chapter.
(7) "Stablecoin" means a digital asset:
(A) whose value is pegged to a specific commodity
or currency; and
(B) that is redeemable on demand for that
commodity or currency.
Sec. 282.002. LICENSE REQUIRED; FEES. (a) The department
shall issue licenses to eligible applicants to authorize the
applicant to be an issuer of oil-backed stablecoin.
(b) A person may not issue or offer for sale oil-backed
stablecoin described by this chapter unless the person holds a
license issued by the department under this section.
(c) The finance commission by rule shall establish
application requirements, licensing fees, background check
requirements, and other conditions for license eligibility under
this section.
(d) An issuer issued a license under this chapter must
comply with all applicable rules adopted by the finance commission
regarding consumer disclosures, anti-money laundering standards,
and know-your-customer requirements.
(e) The department may charge a reasonable fee for the
issuance of a license under this chapter in an amount sufficient to
allow the department to recover all reasonable costs associated
with administering and enforcing this chapter.
Sec. 282.003. CUSTODIAL RESERVE REQUIRED. (a) Each unit of
oil-backed stablecoin in circulation must be backed at all times by
a corresponding quantity of oil or oil products, measured in
million British thermal units or another standard specified by the
department.
(b) The issuer shall maintain a custodial reserve at or
above a one-to-one ratio between the total amount of the oil-backed
stablecoin outstanding and the total amount of oil or oil products
allocated for that purpose, subject to any discount or
overcollateralization requirements established by finance
commission rule.
(c) A custodial reserve may include crude oil, refined
product, or in-ground reserves documented in accordance with rules
adopted by the finance commission, provided the oil or oil product:
(1) is readily auditable;
(2) is located or verifiably allocated within this
state; and
(3) is able to be delivered or monetized in a timely
manner in compliance with redemption obligations under this
chapter.
Sec. 282.004. OIL COMPANY SUB-CUSTODIANS. (a) An oil
company sub-custodian may enter into a contractual agreement with
an issuer to allocate oil or oil products to the issuer's custodial
reserve.
(b) A sub-custodian must meet eligibility requirements
established by finance commission rule, including requirements
relating to financial stability, operational capacity, and
location of the allocated oil or oil product.
(c) A sub-custodian shall allow the issuer or the department
to examine any records necessary to verify the quantity, quality,
and location of the allocated oil or oil product.
Sec. 282.005. CREATION AND REDEMPTION OF OIL-BACKED
STABLECOIN. (a) The issuer may create additional units of the
oil-backed stablecoin only if the custodial reserve is
proportionately increased in accordance with Section 282.003.
(b) The issuer shall redeem the oil-backed stablecoin on the
request of an oil-backed stablecoin holder who surrenders the
digital asset in exchange for:
(1) an equivalent quantity of cash proceeds derived
from the issuer's custodial reserve; or
(2) a direct oil product withdrawal, if permitted by
rule.
(c) On redemption of oil-backed stablecoin, or under other
circumstances requiring a reduction in total oil-backed stablecoin
units in circulation, the issuer shall remove the corresponding
units from circulation on the blockchain ledger.
Sec. 282.006. RULES. (a) The finance commission shall
adopt rules to implement and enforce this chapter, including:
(1) standards for custodial reserve liquidity and
tiered collateral arrangements;
(2) required disclosures to purchasers or holders of
the oil-backed stablecoin, including redemption procedures and
associated risks;
(3) recordkeeping, reporting, and auditing standards
for issuers and sub-custodians; and
(4) any additional consumer protection measures the
finance commission considers necessary.
(b) The finance commission may adopt rules to coordinate
with federal authorities or comply with federal regulations
regarding commodity-backed digital assets.
Sec. 282.007. AUDITS AND PERIODIC REPORTS. (a) The issuer
shall publish or file with the department quarterly, or at another
interval prescribed by finance commission rule:
(1) a comprehensive reserve attestation performed by
an independent certified public accountant;
(2) a comparison of the total number of stablecoin
units outstanding to the total volume of oil or oil products
allocated to the custodial reserve; and
(3) a report of any material changes to sub-custodian
agreements.
(b) The department may require the issuer or a sub-custodian
to submit to periodic or special audits, including on-site
inspections, to ensure compliance with this chapter.
Sec. 282.008. VIOLATIONS; ENFORCEMENT. The department may
impose an administrative penalty, seek injunctive relief, or take
other enforcement action against a person who violates this chapter
or a rule adopted under this chapter.
Sec. 282.009. CONSUMER PROTECTIONS. (a) An issuer may not
engage in unfair or deceptive acts or practices regarding the
issuance or marketing of an oil-backed stablecoin.
(b) A person who suffers damages because of a violation of
this chapter or a rule adopted under this chapter may seek any
remedy available under state law.
Sec. 282.010. TRANSACTIONAL FEES AND ASSESSMENTS. The
department may charge a regulatory fee or assessment for each
transaction of the oil-backed stablecoin, provided that the amount
of the fee or assessment does not unreasonably restrict adoption or
usage of oil-backed stablecoin.
Sec. 282.011. TAX TREATMENT. (a) Any tax on the issuance,
holding, transfer, or redemption of oil-backed stablecoin is
governed by provisions of the Tax Code generally applicable to
commodity transactions, unless otherwise provided by law.
(b) The department and the comptroller shall consult as
necessary to ensure that state tax treatment of oil-backed
stablecoin is administered in a manner that does not subject
holders to duplicative or inconsistent taxation.
SECTION 4. This Act takes effect September 1, 2025.