Louisiana's new cryptocurrency law protects node operators and prohibits CBDCs

According to ChainCatcher, as reported by Cointelegraph, Louisiana has amended its legislation to prohibit the use of Central Bank Digital Currencies (CBDCs) and set rules for miners and node operators. The revised law will take effect in August 2024.

These amendments are referred to as the "Blockchain Fundamental Law," which prohibits Louisiana from participating in testing, accepting, or requiring the use of CBDCs for payments. However, other digital currencies are not included in the legal prohibition. The bill states, "No regulatory agency shall participate in the Federal Reserve's Central Bank Digital Currency testing."

Louisiana has also implemented strict controls on foreign-owned digital asset mining companies. The state's legislation prohibits foreign entities from acquiring or maintaining any ownership interest in digital asset mining operations within Louisiana.

Starting from August 1, 2024, foreign-controlled companies currently engaged in digital asset mining in Louisiana will have one year to completely divest their interests. The law imposes significant penalties for non-compliance, with fines up to $1 million or 25% of the foreign entity's ownership interest in the mining operation.