Texas has passed SB1498, allowing the seizure of digital assets related to crimes.

According to Gate News bot, as reported by Cryptonews, Texas lawmakers have passed Senate Bill 1498, a bipartisan law that grants law enforcement the authority to seize Bitcoin, NFTs, stablecoins, and other Crypto Assets related to criminal activity. The bill has been fully approved and will take effect on September 1.

According to the new law, if digital assets are obtained through criminal activities such as drug trafficking, fraud, theft, organized crime, or human trafficking, they can be seized. The state can also claim any appreciation of the seized assets that occurs between the time of acquisition and the time of seizure.

Law enforcement agencies must transfer all seized assets related to these crimes to a secure offline wallet, which can only be accessed by law enforcement agencies or the state attorney. Forfeiture cases will be filed in the county where the seizing agency is located.

The SB1498 bill incorporates digital property into the same civil asset forfeiture rules as cash, vehicles, and real estate used in criminal activities. Legislators stated that the SB1498 bill fills a gap in current laws, and given the increasingly important role of digital assets in financial crimes, the introduction of this bill is imperative.

At the same time, Arizona is updating its laws to expand the state's seizure laws to include digital assets.

The SB1498 and SB21 bills were introduced simultaneously, with the latter signed by Texas Governor Greg Abbott on June 22, making Texas the first state to allocate public funds and establish a dedicated framework for holders of Bitcoin. The reserve is managed separately from the general treasury and aims to enhance the financial resilience of the state and serve as a tool for hedging against inflation.

In addition, after Arizona and New Hampshire, Texas has become the third state in the United States to pass the Bitcoin Reserve Law.