On June 26, 2023, Texas lawmakers passed legislation enabling law enforcement to seize digital assets connected to crimes.
About the New Law
On June 20, Texas lawmakers passed Senate Bill 1498, granting law enforcement the authority to seize digital assets like Bitcoin, NFTs, stablecoins, and other cryptocurrencies associated with criminal activity.
Conditions for Seizure
Under the new law, digital assets can be seized if they were used in or obtained from crimes such as drug trafficking, fraud, theft, organized crime, or human trafficking. Additionally, any increase in the value of seized assets between the time of acquisition and seizure can also be claimed by the state.
Legislators' Response
Lawmakers stated that SB1498 addresses gaps in current law and is necessary as digital assets increasingly play a role in financial crimes. Digital property will now be governed by the same civil asset forfeiture laws that currently apply to cash, vehicles, and real estate involved in criminal acts.
The SB1498 bill is set to take effect on September 1, enhancing law enforcement's powers regarding digital assets in Texas.
