According to the Legislative Budget Board (LBB), HB 4233 is not expected to result in any significant fiscal impact to the state. The bill amends existing statutes related to reporting and auditing requirements for digital asset service providers, but does not impose any new operational responsibilities or enforcement burdens that would require additional appropriations or staff at the state level.

The Texas Department of Banking, which oversees these providers, is classified as a self-directed, semi-independent agency. This means it funds its own operations through industry fees rather than general revenue and is not part of the legislative appropriations process. Therefore, the changes introduced by the bill—primarily removing certain audit and reporting requirements—are not anticipated to generate new state costs or savings that affect the General Revenue Fund.

Similarly, there are no significant fiscal implications projected for local governments. Since the regulation of digital asset providers falls squarely under state authority, local jurisdictions are not expected to incur costs or be directly impacted by the administrative changes in HB 4233.

HB 4233 removes several regulatory requirements imposed on digital asset service providers in Texas, aiming to reduce compliance costs and streamline oversight. Specifically, it eliminates mandatory annual reports that had to be submitted to the Texas Department of Banking and repeals the requirement that providers grant auditors continuous access to pseudonymized customer account data. The only remaining mandate is that customers receive a quarterly statement of their assets and liabilities held by the provider.

This bill does not grow government, does not increase taxpayer burden, and reduces the regulatory load on private businesses. The Texas Department of Banking operates independently of the state’s general revenue, so there are no fiscal impacts on the state budget or local governments. Importantly, it eliminates red tape without imposing new reporting mandates or enforcement mechanisms.

By easing regulatory constraints, HB 4233 supports free enterprise, personal responsibility, and limited government, allowing digital asset companies greater flexibility while still requiring that customers receive periodic transparency about their accounts. Those who prioritize market freedom and innovation over government-imposed consumer protections will find this bill well-aligned with core liberty principles.

Texas Policy Research recommends that lawmakers vote YES on HB 4233.

• Individual Liberty: The bill supports individual liberty by reducing state involvement in private business operations. It respects the right of individuals and businesses to freely enter into agreements and manage assets without excessive government oversight. While it removes state-mandated protections, it leaves consumers free to choose providers they trust, emphasizing personal decision-making over paternalistic regulation.
• Personal Responsibility: By eliminating state-backed auditing and reporting, the bill places greater responsibility on consumers to evaluate digital asset service providers. It encourages individuals to do their due diligence when selecting where to store or trade digital assets. This aligns with the idea that people, not the government, should take ownership of their financial decisions and risks.
• Free Enterprise: The bill removes regulatory barriers that could discourage innovation or create entry hurdles for smaller digital asset firms. By streamlining reporting obligations and removing redundant oversight, the bill fosters a more open, competitive environment for digital finance in Texas. This is a clear boost for free market principles and economic dynamism.
• Private Property Rights: While the bill does not alter property laws, it indirectly supports private property rights by enabling businesses to manage their operations and assets without intrusive state audits. Consumers retain control over their digital assets, and the bill respects the voluntary, contractual nature of digital asset services.
• Limited Government: The bill exemplifies limited government by scaling back the state’s role in overseeing private financial arrangements. It eliminates previously mandated audit access and annual reporting to the Department of Banking, shrinking the regulatory footprint without compromising core statutory licensing requirements.

• SB 2174 (Same As)