Louisiana Governor Jeff Landry recently made headlines by signing a bill that has significant implications for the world of cryptocurrency. The bill, known as HB 488, not only bans central bank digital currencies (CBDCs) but also protects the right of individuals and businesses to self-custody their crypto assets.
One of the key aspects of the bill is that it prohibits governing authorities from accepting or requiring payments in CBDCs. This means that Louisiana residents can continue to use traditional cryptocurrencies for legal transactions without any interference from the government. Additionally, the bill ensures that individuals and businesses have the freedom to store their crypto assets in non-custodial or hardware wallets, preserving their right to self-custody.
In addition to these provisions, the bill also outlines rules and regulations surrounding crypto mining and node operation. Home crypto mining is protected under the bill, as long as it complies with local noise ordinances. Commercial crypto mining is permitted in industrial-zoned areas, as long as it adheres to all relevant ordinances. The bill also legalizes activities such as operating a node, transferring crypto on a protocol, and staking on a protocol.
The bill includes measures to prevent foreign entities from controlling digital mining businesses in Louisiana. Existing parties with foreign control are required to divest by August 2025, or face significant penalties. These provisions are aimed at safeguarding the integrity of the crypto mining industry in the state.
Louisiana is not the only state taking action on these issues. Other states, such as Oklahoma, Montana, and Arkansas, have introduced legislation to protect crypto miners and regulate the use of cryptocurrencies. At the federal level, the US House recently passed a bill that would prevent the Federal Reserve from creating a CBDC without Congressional approval, signaling a broader debate on the role of digital currencies in the US economy.
Overall, Louisiana’s new bill represents a significant step in protecting the rights of individuals and businesses in the cryptocurrency space. By banning CBDCs, ensuring the right to self-custody, and regulating crypto mining, the state is sending a clear message about its commitment to fostering a healthy and vibrant crypto ecosystem. As other states and the federal government grapple with similar issues, Louisiana’s actions may serve as a model for future legislation in this rapidly evolving field.