Louisiana Governor Jeff Landry recently signed a bill, HB 488, that prohibits central bank digital currencies (CBDCs) and aims to protect crypto mining within the state. The bill specifically prevents governing authorities from accepting or requiring payments in CBDCs, as well as participating in any CBDC tests conducted by federal government bodies.
Aside from the prohibition of CBDCs, the bill also guarantees individuals and businesses the right to accept cryptocurrency for legal goods and services, and to store their crypto in non-custodial and hardware wallets. Furthermore, the legislation outlines rules surrounding crypto mining and node operation, ensuring compliance with local noise ordinances for home mining and permitting commercial mining in industrial-zoned areas while complying with all ordinances.
Under this new law, operating a node to connect to a blockchain protocol, transferring crypto on the protocol, and staking on the protocol are deemed legal activities. Louisiana’s attorney general is empowered to take action against fraud and violations related to mining and staking services, with participants required to adhere to both federal and state securities laws.
The bill also imposes restrictions on foreign parties controlling digital mining businesses, mandating existing foreign owners to divest from their interests by August 2025. Failure to comply with these ownership regulations can result in civil penalties of up to $1 million or 25% of the foreign party’s interest in the business.
Louisiana is not alone in its legislative efforts concerning crypto mining and CBDCs. Other states such as Oklahoma, Montana, and Arkansas have introduced similar bills to protect crypto miners and address the complexities of digital currency regulation. At the federal level, there are discussions about blocking the creation and issuance of CBDCs by the Federal Reserve without Congressional approval.
As more states grapple with the implications of crypto mining and the rise of CBDCs, it is evident that regulatory frameworks need to evolve to accommodate these emerging technologies. The passing of bills like HB 488 in Louisiana signals a growing awareness of the need to balance innovation in the crypto space with regulatory oversight to protect consumers and investors alike. It will be interesting to see how these laws continue to develop and shape the future of digital currency in the United States.
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