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.