Relating to certain reports required to be filed by digital asset service providers.

SB 1941 requires digital asset service providers (like exchanges or custodians) in Texas to file annual reports with the Department of Banking by the 90th day after each fiscal year ends. The reports must include: (1) a statement confirming customer liabilities, (2) proof of customer assets held, and (3) either an independent audit or agreed-upon procedures report verifying that custody assets match customer liabilities. This bill directly affects businesses managing digital assets for customers, imposing transparency requirements to ensure they can cover customer claims. The law takes effect September 1, 2025.