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Louisiana embraces Bitcoin with new Blockchain Basics Act
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In a significant move for the cryptocurrency world, Louisiana passed the “Blockchain Basics Act,” also known as House Bill 488. This legislation, supported by Congressman Mark Wright, offers substantial legal protections for Bitcoin and other digital assets all inside the state.
Announced by Dennis Porter, co-founder and CEO of Satoshi Action Fund, the new law aims to safeguard the rights of miners and users of digital assets. Officially passed on June 19, the bill will take effect on August 1, 2024. Its main provisions include legal protection for domestic digital asset miners, the right to self-custody for digital asset users, the right to citizens to use Bitcoin as a means of payment and the ban on the creation of central bank digital currencies (CBDC). This legislation builds on Satoshi’s action model policy and places Louisiana alongside states like Oklahoma, Montana, and Arkansas in embracing Bitcoin-focused laws.
“States are creating a blueprint for federal policy. It won’t be long before we see the impact in Washington,” Wright said in an interview with Forbes. She highlighted the importance of states acting as “laboratories of democracy” and the potential of Bitcoin to unify Americans across political lines.
The passage of this bill attracted significant attention, with pro-crypto Senator Cynthia Lummis (R-WY) expressing her enthusiasm about X, stating: “States are leading the way. This is the why Bitcoiners should be American patriots. You can fight for your rights and WIN.” Lummis’ support for the Blockchain Basics Act comes amid growing attention to politicians’ stance on cryptocurrencies ahead of the November 2024 US presidential election.
Republican leader Donald Trump has previously spoken out against CBDCs, calling them “very dangerous.” “As your president, I will never allow a central bank to create a digital currency,” the presumptive Republican nominee said at a rally in January. Meanwhile, current US President Joe Biden has largely taken a pro-regulation stance on digital assets and has toyed with the idea of establishing a CBDC. While the two political rivals are roughly tied in official polls, recent data shows Louisiana has an estimated 57% disapproval rating for Biden. The latest Louisiana poll from political polling site 538 shows Trump leading Biden by 15%. If Trump is elected, it could signal more Bitcoin-friendly policies nationwide.
As the political landscape continues to evolve, the success of Louisiana’s new Bitcoin legislation highlights the growing influence of state-level policies on national debates. The Blockchain Basics Act not only solidifies Louisiana’s position on digital assets, but also sets a precedent for other states to follow. With states like Louisiana taking proactive steps to protect and promote the use of Bitcoin, this could pave the way for broader acceptance and integration of digital currencies in the United States.
This landmark legislation reflects the dynamic and rapidly evolving world of cryptocurrencies. By providing a legal framework that supports innovation while protecting individual rights, Louisiana is positioning itself at the forefront of the digital financial revolution. As more states consider similar measures, the impact of these policies will likely have resonance far beyond their borders, potentially shaping the future of digital currency regulation in America.