Parker Stablecoin Bill Counts Oil Still In The Ground As Backing

The text as introduced · 1,303 words

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.