Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1498 explicitly classifies digital currency, NFTs, and stablecoins as "contraband" subject to civil forfeiture in Texas. For Regulated Financial Institutions (RFIs) and crypto-custodians, this creates a new operational mandate: upon service of a seizure warrant, you must be capable of transferring digital assets directly to a law enforcement-controlled "cold wallet," rather than simply freezing the account in place.
Sen. Robert Nichols·Senate Bill·Regular Session
Attorneys representing the State (District Attorneys) • Texas District Courts • Texas Law Enforcement Agencies (Peace Officers)
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Terms of Service (TOS) & User Agreements: You must amend customer agreements immediately to include:
Compliance & Fraud Teams:
Valuation Snapshots:
Chain of Custody:
Network Fees ("Gas"):
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about SB1498
SB1498 explicitly classifies digital currency, NFTs, and stablecoins as "contraband" subject to civil forfeiture in Texas. For Regulated Financial Institutions (RFIs) and crypto-custodians, this creates a new operational mandate: upon service of a seizure warrant, you must be capable of transferring digital assets directly to a law enforcement-controlled "cold wallet," rather than simply freezing the account in place.
SB1498 was authored by Texas Senator Robert Nichols during the Regular Session.
SB1498 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1498 is enforced by Attorneys representing the State (District Attorneys), Texas District Courts and Texas Law Enforcement Agencies (Peace Officers).
The regulatory priority for SB1498 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1498 is estimated as "low". This may vary based on industry and implementation requirements.
SB1498 addresses topics including criminal procedure, criminal procedure--general, financial, financial--general and assets.
Key dates for SB1498: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB1498 establishes the following penalties: civil forfeiture penalty of Total value of digital asset + appreciation for Use of digital currency, NFTs, or stablecoins in commission of felonies (fraud, money laundering, drug trafficking) or specific misdemeanors, or acquiring such assets with criminal proceeds.. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
