From stablecoins to NFTs — Texas is arming law enforcement with the power to seize digital assets linked to crime.
Bitcoin, NFTs, and Stablecoins Now Fair Game for Seizure
The state of Texas has officially enacted SB 1498 — a new law that allows the seizure of bitcoin and other digital assets involved in criminal offenses.
Passed into law on June 20, 2025, the measure will go into effect on September 1, 2025, giving prosecutors and law enforcement a fresh tool to combat crime in the digital age.
The move targets a wide range of illegal activities, including money laundering, scams, and drug trafficking facilitated by cryptocurrencies. Anything from bitcoin (BTC) to stablecoins and NFTs (non-fungible tokens) can now be confiscated if linked to criminal operations.
Cold Wallet Custody: Protecting Seized Crypto from Cyber Threats
One of the standout features of SB 1498 is its strict security protocol for handling confiscated assets.
The law mandates that all seized crypto be stored in cold wallets — offline storage solutions designed to protect against hacking and cyberattacks.
This ensures that while authorities work to determine the legal status of the assets, they remain safe from external threats. Once cases are resolved, the digital assets will be converted into funds to support police operations.
Where the Money Goes: Not Texas’ Bitcoin Reserve
It’s worth noting that funds recovered through this law will not be added to Texas’ Bitcoin Strategic Reserve.
The forfeiture proceeds are designated solely for law enforcement use, maintaining a clear separation from the state’s official bitcoin investment plans.
NEW: Texas enacts 'asset forfeiture' law SB1498, allowing the state to seize digital assets tied to criminal offenses.
Proceeds will go to a special forfeiture fund, *not* the Strategic Reserve just created by SB 21. pic.twitter.com/wF1WfBEZ83
— Bitcoin Laws (@Bitcoin_Laws) June 23, 2025
Texas Balances Bitcoin Innovation with Tough Enforcement
Texas has worked hard to position itself as one of the most crypto-friendly states in America. But this law sends a clear message: while the state encourages digital asset adoption, it draws a hard line against their use for illegal purposes.
The new measure complements other crypto-focused legislation already in play. Earlier this year, Texas passed SB 21, an initiative to establish a special fund dedicated to buying, selling, and holding bitcoin as a hedge against inflation and financial instability.
That legislation also granted legal protection to what could eventually become the state’s strategic bitcoin reserve.
The Bottom Line
Texas continues to embrace bitcoin on one hand while cracking down on crypto-related crime with the other. With SB 1498 now in effect, criminals exploiting digital assets in the Lone Star State will find it harder than ever to hide behind blockchain anonymity.
In Texas, crypto might be the future — but crime doesn’t get a pass.
Why Cold Wallets Matter
Cold wallets are offline storage devices that keep digital assets safe from online threats like hacking, phishing, or malware.
Unlike hot wallets, which are connected to the internet, cold wallets offer airtight protection — making them the gold standard for securing seized crypto. Whether you’re law enforcement or an everyday investor, if your crypto isn’t in a cold wallet, it’s exposed.
Best Cold Storage Wallets
The growing number of crypto-targeted hacks underscores why secure, non-custodial tools like Best Wallet are more critical than ever.
While it’s not technically a cold storage wallet, it delivers a level of security comparable to one – amplifying its appeal to both law enforcements and everyday investors seeking maximum protection for their assets.
It’s no doubt that almost every crypto user wants tools that shield their financial data from prying eyes, especially government agencies. Best Wallet rises to that challenge with a design grounded in full privacy.
It allows users to buy, trade, and store their assets without undergoing any rigorous KYC checks – no email address handover, no identity forms, no verification hoops, nothing!
Moreover, since the wallet operates on a self-custody model, users maintain full control of their private keys. This approach ensures that no third party can access their assets.
Just download it either from the Google Play Store or Apple Store, set it up, and you’re in full control.
Best Wallet’s integration with Fireblocks adds an extra layer of security, offering insurance coverage for crypto funds held within the facility. Fireblocks uses Non-Custodial MPC to split users’ private keys into two parts – one part is stored on the Fireblocks server and the other on the users’ device – ensuring that there’s no single point of failure that cyber criminals can exploit.
Besides being the best non-custodial, no-KYC wallet, Best Wallet also excels when it comes to providing all the tools users need to navigate the volatile market and maximize their returns.
Key features include cross-chain swaps, fiat payment, staking, iGaming perks, and a token launchpad. Other important features like the Best Card, Portfolio Management, derivatives and futures trading, and in-app news feed are also in the works, making it a one-stop destination for all things crypto.
It is therefore not without reason that many crypto thought leaders are calling it the best place to store funds securely in 2025.
Visit Best Wallet
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