Relating to the establishment and administration of the Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds.

Contracts

• Master Services Agreements (MSAs): Vendors must amend MSAs to include representations and warranties confirming a physical Texas presence and a registered principal in the state.
• Service Level Agreements (SLAs): Liquidity providers must agree to strict settlement timelines to meet the Comptroller's statutory authority to liquidate assets "as necessary" for cash management.
• Indemnification: Custodians must accept liability for breaches of the "cold storage" standard, specifically regarding internet isolation.

Hiring/Training

• Registered Principal: Liquidity providers must hire or designate a registered principal physically located in Texas if one does not currently exist.
• Technical Operations: Custodial staff must be trained on new workflows for handling "Forks" and "Airdrops," as the law explicitly permits the state to retain assets derived from these events.

Reporting & Record-Keeping

• Statutory Certification: Vendors must prepare a certification package proving:
• 1. Five years of continuous experience in digital asset trading.
• 2. Audited financial statements.
• 3. Licensure under state/federal law.
• Asset Segregation: Custodians must structurally segregate Reserve assets from general treasury pools. Commingling that violates the statutory definition of "cold storage" is prohibited.

Fees & Costs

• Audit Expenses: Vendors should budget for increased external audit costs, as the state will require independent verification of asset existence on the blockchain.
• Infrastructure Costs: Potential capital expenditure for custodians to meet the strict "no internet nexus" requirement for private key storage if current systems utilize "warm" wallet architecture.