On June 19, Louisiana Governor Jeff Landry signed HB 488, a bill banning central bank digital currencies (CBDCs) and protecting crypto mining. The bill prohibits authorities from accepting or mandating CBDC payments and from participating in Federal Reserve CBDC tests. It allows individuals and businesses to use and self-custody crypto for legal goods and services.

The bill also outlines regulations for crypto mining and node operation, safeguarding home crypto mining if it complies with local noise laws and permitting commercial mining in industrial areas. It legalizes operating nodes, transferring crypto, and staking.

Louisiana’s attorney general is empowered to act against fraud and violations related to mining and staking services, which must also comply with federal and state securities laws. The bill prevents foreign entities from controlling digital mining businesses, with non-compliant entities facing penalties.

The law, effective August 1, amends existing legislation. Other states, like Oklahoma and Montana, have also enacted laws protecting crypto miners and self-custody of crypto. At the federal level, a US House bill seeks to prevent the Federal Reserve from creating a CBDC without Congressional approval, now awaiting Senate consideration.