Louisiana signs bill to ban CBDCs, protect right to self-custody and mine crypto
The bill, HB 488, prevents governing authorities from accepting or requiring payments in CBDCs. It also bars authorities from participating in CBDC tests by the Federal Reserve Board of Governors and other federal government bodies.
It guarantees individuals and businesses the ability to accept crypto for legal goods and services and to self-custody crypto in non-custodial and hardware wallets.
The remainder of the bill describes rules around crypto mining and node operation. It protects home crypto mining in compliance with local noise ordinances. It permits commercial crypto mining in industrial-zoned areas in compliance with all ordinances.
Under the law, operating a node to connect to a blockchain protocol or a secondary protocol, transferring crypto on the protocol, and staking on the protocol are legal.
Louisiana’s attorney general can act against fraud and other violations concerning mining and staking as a service. Participants must also abide by federal and state securities law.
The bill also blocks prohibited foreign parties from controlling digital mining businesses and requires existing parties to divest by August 2025. Prohibited foreign parties that do not comply will face civil penalties of up to $1 million or 25% of the foreign party’s interest in the business.
The bill amends existing law and comes into effect on Aug. 1.
Other states’ efforts
Other states have introduced laws concerning the same issues. In May, Oklahoma’s governor signed a bill into law protecting crypto miners and self-custody of crypto. The same month, Montana’s governor signed a bill banning local governments from prohibiting mining.
Arkansas signed two bills in May imposing or permitting restrictions on crypto mining following the success of a more lenient bill in 2023.
Separately, several states are addressing the possibility of a CBDC. Ledger Insights said in February that 11 states had pending legislation on the matter, either blocking state acceptance of CBDC, rejecting CBDC as money, blocking state trial participation, or taking another approach.
At the federal level, the US House passed a bill to block the Federal Reserve from creating and issuing a CBDC without Congressional approval. The Senate must now consider the bill.
