Hughes Gold Currency Bill Leaves The Launch To The Comptroller

The text as introduced · 1,391 words

89R740 KJE-D

By: Hughes
S.B. No. 665

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of gold and silver specie and the

establishment of a digital currency based on gold and silver;

authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 4, Government Code, is amended

by adding Chapter 404A to read as follows:

CHAPTER 404A. GOLD AND SILVER CURRENCY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 404A.0001. DEFINITIONS. In this chapter:

(1) "Bullion" and "specie" have the meanings assigned

by Section 2116.001.

(2) "Digital currency" means the digital

representation of gold and silver specie and bullion held in the

pooled depository account as established under this chapter.

(3) "Pooled depository account" means the account

established in the Texas Bullion Depository under Section

404A.0052.

Sec. 404A.0002. RULES. The comptroller may adopt rules as

necessary or convenient to implement this chapter, including rules

to:

(1) ensure the security of gold or silver specie or

bullion, digital currency, transactions, and related data; and

(2) prevent fraud.

SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER

SPECIE AND DIGITAL CURRENCY

Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by

Section 10, Article I, United States Constitution, to the extent

the comptroller determines practicable, the comptroller shall:

(1) establish and provide for the issuance of gold and

silver specie; and

(2) establish and issue a digital currency based on

gold and silver that represents a particular fraction of a troy

ounce of gold or silver, as applicable, held in trust as provided by

this chapter.

(b) The comptroller may contract with a private vendor to

establish the digital currency under Subsection (a)(2) or perform

other duties under this chapter. To the extent consistent with

state and federal law, in contracting with a private vendor under

this subsection the comptroller shall give preference to a vendor

whose principal place of business is in this state.

(c) In establishing gold and silver specie under Subsection

(a)(1), the comptroller shall:

(1) authorize the Texas Bullion Depository as this

state's exclusive issuer; and

(2) ensure that the holder of the specie may:

(A) use the specie as legal tender in payment of

debt; and

(B) readily transfer the specie to another

person.

(d) In establishing the digital currency under Subsection

(a)(2), the comptroller shall provide a means to ensure that a

person who holds the digital currency may:

(1) use the digital currency as legal tender in

payment of debt; and

(2) by electronic means readily transfer or assign the

digital currency to another person.

Sec. 404A.0052. BULLION DEPOSITORY ACCOUNT. (a) The

comptroller, serving as trustee, or another person the comptroller

appoints to serve as trustee, shall hold in trust on behalf of the

digital currency holders all gold and silver specie and bullion

owned or purchased for the purposes of issuing the digital

currency. The trustee shall maintain enough gold and silver specie

or bullion to provide for the redemption of all units of the digital

currency issued but not redeemed.

(b) The trustee shall establish a pooled depository account

in the Texas Bullion Depository to hold in trust as trustee on

behalf of the digital currency holders all gold and silver specie

and bullion owned and allocated or purchased for purposes of

issuing the digital currency.

Sec. 404A.0053. ISSUANCE OF DIGITAL CURRENCY. (a) The

comptroller may issue to a person the appropriate number of units

and fractional units of the digital currency when the person,

together with any fee charged under Section 404A.0058:

(1) makes the appropriate payment to the comptroller

for the comptroller to purchase gold or silver specie or bullion for

the pooled depository account to be represented by the digital

currency; or

(2) designates gold or silver specie or bullion held

in a depository account with the Texas Bullion Depository to be

transferred to the pooled depository account for the purpose of

being represented by the digital currency.

(b) On receiving payment under Subsection (a)(1), the

comptroller shall:

(1) using the money received, purchase gold or silver

specie or bullion in the number of fractional troy ounces equal to

the number of units or fractional units of the digital currency to

be issued to the person under Subsection (a);

(2) deposit for the person the gold or silver specie or

bullion purchased under Subdivision (1) into the pooled depository

account; and

(3) issue to the person a digital currency account

with the Texas Bullion Depository, or, if applicable, add to an

existing digital currency account held by the person with the

depository, the number of units or fractional units of the digital

currency equal to the amount of specie or bullion that the money

received from the person would buy on the date the payment is

received.

(c) On receiving a person's designation under Subsection

(a)(2), the comptroller shall:

(1) withdraw from the person's depository account with

the Texas Bullion Depository the amount of gold or silver specie or

bullion designated and deposit the specie or bullion for the person

to the pooled depository account; and

(2) issue to the person a digital currency account

with the Texas Bullion Depository, or, if applicable, add to an

existing digital currency account held by the person with the

depository, the number of units or fractional units of the digital

currency equal to the amount of gold or silver specie or bullion

that the pooled depository account received from the person on that

date.

Sec. 404A.0054. REDEMPTION OF DIGITAL CURRENCY FOR UNITED

STATES DOLLARS. (a) A person who holds digital currency may

present to the comptroller any number of units or fractional units

of the digital currency to redeem for United States dollars.

(b) On receipt of a person's request for redemption, the

comptroller shall:

(1) sell from the gold or silver specie or bullion held

in the pooled depository account a number of fractional troy ounces

equal to the number of units or fractional units of the digital

currency being redeemed; and

(2) provide to the person an amount of United States

dollars equal to the amount received from the sale of the gold and

silver specie or bullion under Subdivision (1), less the amount of

any fee charged under Section 404A.0058.

Sec. 404A.0055. REDEMPTION OF DIGITAL CURRENCY FOR SPECIE

OR BULLION. (a) A person who holds digital currency may present to

the comptroller any number of units or fractional units of the

digital currency to redeem for an equal fractional number of troy

ounces of gold or silver specie or bullion from the pooled

depository account.

(b) On receipt of a request for redemption, the comptroller

shall:

(1) withdraw the equivalent fractional number of troy

ounces of gold or silver specie or bullion from the pooled

depository account; and

(2) on the payment of a fee charged under Section

404A.0058, deliver the gold or silver specie or bullion to the

requestor as requested.

Sec. 404A.0056. VALUE OF DIGITAL CURRENCY. (a) At the time

of each transaction involving the issuance or redemption of the

digital currency, the comptroller shall determine the value of a

unit of the digital currency.

(b) The value of a unit of the digital currency at the time

of a transaction must be equal to the value of the appropriate

fraction of a troy ounce of gold or silver, respectively, at the

time of that transaction as published by the Texas Bullion

Depository.

Sec. 404A.0057. CERTAIN MONEY AND DEPOSITS HELD IN TRUST

AND NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received under

Section 404A.0053(a), gold or silver specie or bullion purchased or

deposited in the pooled depository account as provided by Section

404A.0053(b) or (c), and money received from the sale of gold or

silver specie or bullion in the pooled depository account in

response to a request for redemption under Section 404A.0054 is:

(1) held by the comptroller as trustee outside the

state treasury on the behalf of persons who hold the digital

currency; and

(2) not available for legislative appropriation.

Sec. 404A.0058. FEE. The comptroller may establish a fee

for the issuance or redemption of the digital currency to cover the

comptroller's costs in administering this chapter and an industry

standard merchant fee for use. The comptroller shall deposit the

net fee proceeds after costs to the credit of the general revenue

fund.

SECTION 2. This Act takes effect September 1, 2025.