Louisiana Governor Jeff Landry recently signed a bill, HB 488, that aims to protect the rights of individuals and businesses to engage in crypto transactions. The bill prohibits central bank digital currencies (CBDCs) and ensures that governing authorities cannot accept or require payments in CBDCs.
The bill also lays out rules around crypto mining and node operation. It allows for home crypto mining as long as it complies with local noise ordinances. Commercial crypto mining is permitted in industrial-zoned areas, provided that all ordinances are followed. Additionally, individuals are allowed to operate nodes to connect to blockchain protocols, transfer crypto, and stake on the protocol.
Enforcement and Compliance
Louisiana’s attorney general is empowered to take action against fraud and other violations related to mining and staking as a service. Participants are required to comply with federal and state securities laws. The bill also prohibits foreign parties from controlling digital mining businesses and mandates that existing parties divest by August 2025.
The bill, which goes into effect on August 1, represents a significant step in the regulation of crypto transactions in Louisiana. Other states have also introduced similar legislation to protect crypto miners and ensure the legality of crypto transactions. This trend reflects a broader concern at both the state and federal levels about the implications of central bank digital currencies and the need to regulate the rapidly growing crypto industry.
Overall, the bill represents a proactive approach to addressing the challenges and opportunities presented by crypto transactions. By laying out clear rules and enforcement mechanisms, Louisiana aims to create a framework that allows for the growth of the crypto industry while protecting individuals and businesses from potential risks. The bill sets a precedent for other states to follow in establishing comprehensive regulations around crypto transactions and mining activities.
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