Texas § 403.705 THIRD-PARTY CONTRACTS AND PERMISSIBLE TRANSACTIONS; AUDITS.

Texas Statutes

§ 403.705 — THIRD-PARTY CONTRACTS AND PERMISSIBLE TRANSACTIONS; AUDITS.

Texas § 403.705

Code GVGovernment Code

This text of Texas § 403.705 (THIRD-PARTY CONTRACTS AND PERMISSIBLE TRANSACTIONS; AUDITS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Government Code Code Ann. § 403.705 (2026).

Text

Sec. 403.705. THIRD-PARTY CONTRACTS AND PERMISSIBLE TRANSACTIONS; AUDITS.

(a)The comptroller may contract with one or more third-party entities for the administration or management of the reserve, including contracting with:

(1)a qualified custodian who employs secure custodial technologies, including cold storage; and

(2)a qualified liquidity provider to facilitate the purchase and management of assets in the reserve.

(b)For purposes of Subsection (a)(2), "qualified liquidity provider" means an entity that:

(1)is licensed or regulated under applicable federal or state law;

(2)maintains audited financial statements prepared by a regulated auditor;

(3)has at least five years of experience trading in the digital assets industry;

(4)maintains an office and has a registered principal i

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Sec. 403.705. THIRD-PARTY CONTRACTS AND PERMISSIBLE TRANSACTIONS; AUDITS. (a) The comptroller may contract with one or more third-party entities for the administration or management of the reserve, including contracting with:
(1) a qualified custodian who employs secure custodial technologies, including cold storage; and
(2) a qualified liquidity provider to facilitate the purchase and management of assets in the reserve.
(b) For purposes of Subsection (a)(2), "qualified liquidity provider" means an entity that:
(1) is licensed or regulated under applicable federal or state law;
(2) maintains audited financial statements prepared by a regulated auditor;
(3) has at least five years of experience trading in the digital assets industry;
(4) maintains an office and has a registered principal in this state; and
(5) has certified in a method prescribed by the comptroller that the provider meets the requirements of Subdivisions (1)-(4).
(c) If the comptroller determines it is in the best interest of the reserve, the comptroller may use derivatives.
(d) The comptroller may contract with a certified public accountant to perform an independent audit of the reserve.