Louisiana Governor Jeff Landry recently signed a bill, HB 488, to prohibit central bank digital currencies (CBDCs) and protect crypto mining. The bill prevents governing authorities from accepting or requiring payments in CBDCs and also bars participation in CBDC tests by the Federal Reserve Board of Governors and other federal government bodies. Individuals and businesses are guaranteed the ability to accept crypto for legal goods and services and self-custody crypto in non-custodial and hardware wallets. The bill also 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.
Under the new law, operating a node, transferring crypto, and staking on a blockchain protocol are legal activities. Louisiana’s attorney general has the authority to act against fraud and other violations related to mining and staking as a service, requiring participants to abide by federal and state securities laws. The bill also blocks prohibited foreign parties from controlling digital mining businesses and requires existing parties to divest by August 2025, with civil penalties for non-compliance.
Other states have also introduced legislation related to CBDCs and crypto mining. Oklahoma, Montana, and Arkansas have passed bills protecting crypto miners and self-custody of crypto, as well as imposing or permitting restrictions on mining activities. 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 now set to consider the legislation.
Overall, the new bill in Louisiana aims to regulate and protect crypto-related activities while prohibiting the use of CBDCs by governing authorities. It joins a growing number of states and the federal government in addressing issues related to digital currencies and crypto mining, reflecting the evolving landscape of the industry. The legislation seeks to create a framework for legal and secure participation in crypto activities, while also ensuring compliance with securities laws and preventing foreign control of digital mining businesses. As the industry continues to grow and evolve, it will be important for policymakers to adapt and develop regulations that support innovation while protecting consumers and investors.
