Louisiana Governor Jeff Landry recently signed a bill, HB 488, that prohibits central bank digital currencies (CBDCs) and protects crypto mining within the state. This bill prevents governing authorities from accepting or requiring payments in CBDCs and also bars them from participating in CBDC tests by federal government bodies. Individuals and businesses are guaranteed the ability to accept crypto for legal goods and services and to self-custody crypto in non-custodial and hardware wallets. Additionally, the bill outlines rules around crypto mining and node operation, protecting home crypto mining in compliance with local noise ordinances and permitting commercial crypto mining in industrial-zoned areas in compliance with all ordinances.
Under the new law, operating a node to connect to a blockchain protocol, transferring crypto on the protocol, and staking on the protocol are all considered legal activities. Louisiana’s attorney general has the authority to act against fraud and other violations concerning mining and staking as a service, and participants must comply with federal and state securities laws. The bill also prohibits foreign parties from controlling digital mining businesses and requires existing parties to divest by August 2025, with civil penalties of up to $1 million or 25% of the foreign party’s interest in the business for non-compliance. The bill amends existing law and will come into effect on August 1.
Other states have also taken steps to address similar issues related to crypto mining and CBDCs. Oklahoma, Montana, and Arkansas have all introduced legislation regarding these topics, with varying levels of restrictions or permissions. At the federal level, the US House recently passed a bill to block the Federal Reserve from creating and issuing a CBDC without Congressional approval, with the Senate set to consider the bill next. Overall, the landscape of crypto regulation in the United States is evolving rapidly, with states and the federal government taking measures to address these emerging technologies.
