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2024 Regular Session
HOUSE BILL NO. 488
BY REPRESENTATIVE WRIGHT
COMMERCE: Provides relative to blockchain and digital asset regulation
1 AN ACT
2To enact Chapter 23 of Title 6 of the Louisiana Revised Statutes of 1950, to be comprised
3 of R.S. 6:1411 through 1416, relative to digital assets and cryptocurrency; to prohibit
4 certain government regulations of digital assets; to provide for a short title; to
5 provide for definitions; to prohibit governing authorities from requiring use,
6 payment, or testing of central bank digital currency; to provide for use of home
7 digital asset mining; to provide for exceptions; to prohibit certain licensing
8 requirements; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. Chapter 23 of Title 6 of the Louisiana Revised Statutes of 1950,
11comprised of R.S. 6:1411 through 1416, is hereby enacted to read as follows:
12 CHAPTER 23. BLOCKCHAIN BASICS ACT
13 §1411. Short title
14 This Chapter shall be known and may be cited as the "Blockchain Basics
15 Act".
16 §1412. Definitions
17 As used in this Chapter, the following terms have the following meanings,
18 unless context of use clearly requires otherwise:
19 (1) "Blockchain" has the meaning ascribed to it in R.S. 6:1382. The term
20 "blockchain" includes both of the following:
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1 (a) Data that is shared across a network to create a ledger of verified
2 transactions or information among network participants linked together using
3 cryptography to maintain the integrity of the ledger and to execute other functions.
4 (b) Data that is distributed among network participants in an automated
5 fashion to concurrently update network participants on the state of the ledger and any
6 other function.
7 (2) "Blockchain protocol" means any executable software deployed to a
8 blockchain composed of source code that is publicly available and accessible,
9 including a smart contract or any network of smart contracts.
10 (3) "Central bank digital currency" means a digital currency, a digital
11 medium of exchange, or a digital monetary unit of account issued by the United
12 States Federal Reserve System or a federal agency which is made directly available
13 to a consumer by such entities, or which is processed or validated directly by such
14 entities. The term does not mean a digital asset, backed by legal tender or
15 government treasuries and issued by a private entity.
16 (4) "Consumer Price Index" means the Consumer Price Index for All Urban
17 Consumers or CPI-U, not seasonally adjusted, as defined and officially recorded by
18 the United States Department of Labor, or its successor agency, from January 1st of
19 the current year compared to January 1st of the preceding year.
20 (5) "Digital asset" means virtual currency, cryptocurrencies, natively
21 electronic assets, including stablecoins and non-fungible tokens or NFTs, and other
22 digital-only assets that confer economic, proprietary, or access rights or powers.
23 (6) "Digital asset mining" means using electricity to power a computer or
24 node for the purpose of securing a blockchain network.
25 (7) "Digital asset mining business" means a group of computers working that
26 consume more than one megawatt of energy for the purpose of securing a blockchain
27 protocol.
28 (8) "Governing authority" means any board, commission, department or
29 other agency of the state or any political subdivision in the state.
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1 (9) "Hardware wallet" means a physical device that is not continuously
2 connected to the internet and allows an individual to secure and transfer digital
3 assets. The term "hardware wallet" also includes a physical device under which the
4 owner of digital assets retains independent control over the digital assets.
5 (10) "Home digital asset mining" means using digital asset mining in an area
6 zoned for residential use.
7 (11)(a) "Node" means a computational device that does any of the following:
8 (i) Communicates with other devices or participants on a blockchain to
9 maintain consensus and integrity of that blockchain.
10 (ii) Creates and validates transaction blocks.
11 (iii) Contains and updates a copy of a blockchain.
12 (b) A node does not exercise discretion over transactions initiated by the end
13 user of the blockchain protocol.
14 (12) "Nonfungible token" or "NFT" has the meaning ascribed to it in R.S.
15 6:1382.
16 (13) "Self-hosted wallet" means a digital interface that is used to do both of
17 the following:
18 (a) Secure and transfers digital assets.
19 (b) Retain independent control over the secured digital assets by the owner
20 of the digital asset.
21 (14) "Staking" means the act of committing digital assets for a period of time
22 to validate and secure a specific blockchain network.
23 (15) "Staking as a service" means the provision of technical staking services,
24 including the operation of nodes and the associated infrastructure necessary to
25 facilitate participation in blockchain networks' consensus mechanisms.
26 §1413. Prohibitions on use and testing of central bank digital currency
27 A. A governing authority shall not accept or require a payment using central
28 bank digital currency.
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1 B. A governing authority shall not participate in any test of central bank
2 digital currency by the Board of Governors of the Federal Reserve System or any
3 branch or agency of the federal government.
4 §1414. Permitted uses of digital assets
5 A governing authority shall not prohibit, restrict, or otherwise impair the
6 ability of an individual or business to do either of the following:
7 (1) Accept digital assets as a method of payment for legal goods and
8 services.
9 (2) Self-custody digital assets using a self-hosted wallet or hardware wallet.
10 §1415. Permitted uses of home digital asset mining; exceptions
11 A. It shall be legal in this state to do both of the following:
12 (1) Participate in home digital asset mining as long as the person engaging
13 in home digital asset mining complies with all local noise ordinances.
14 (2) Have a digital asset mining business in any area that is zoned for
15 industrial use, provided they comply with all current ordinances.
16 B. No political subdivision of this state shall do any of the following:
17 (1) Place any specific limit on sound decibels generated from home digital
18 asset mining other than general limits set for sound pollution put forth by the
19 political subdivision.
20 (2) Place any specific limit on sound decibels generated from a digital asset
21 mining business other than limits set for sound pollution which apply to industrial
22 zoned areas generally.
23 (3) Impose any other requirements on a digital asset mining business that is
24 also not a requirement for data centers in its area of jurisdiction.
25 (4) Change the zoning of a digital asset mining business without going
26 through the proper notice and comment.
27 C. A digital asset mining business shall be able to appeal a change in zoning
28 to the proper court of jurisdiction. A judge shall find a violation of this Section and
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1 nullify such a change in zoning if the judge determines the change was done to
2 discriminate against a digital asset mining business.
3 §1416. Exemptions from licensing, contract, and liability; home digital asset
4 mining; node operating
5 A. Anyone engaged in home digital asset mining, a digital asset mining
6 business, digital assets mining, or exchanging digital assets for another digital asset
7 on a blockchain protocol shall not be required to obtain a money transmitter license
8 pursuant to R.S. 6:1033 and 1035, to engage in that activity.
9 B.(1) It shall be legal in this state to operate a node for the purpose of
10 connecting to a blockchain protocol, or a protocol built on top of a blockchain
11 protocol, and transferring digital assets on a blockchain protocol, or to participate in
12 staking on a blockchain protocol.
13 (2) Operating a node or a series of nodes on a blockchain protocol shall not
14 require an individual or business to obtain a money transmitter license pursuant to
15 R.S. 6:1033 and 1035, to engage in that activity.
16 C. For the avoidance of doubt, a business offering to provide digital asset
17 mining or staking as a service for individuals or to other businesses shall not be
18 considered as offering a security or investment contract pursuant to Part X of
19 Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950.
20 D. Notwithstanding any other provision of law to the contrary, no individual
21 or entity shall face liability related to a specific transaction merely by validating such
22 transaction if such individual or entity does any of the following:
23 (1) Engages in digital asset mining.
24 (2) Operates a node or series of nodes on a blockchain network.
25 (3) Provides digital asset mining, staking, or offering staking as a service for
26 individuals or other businesses.
27 Section 2. The Louisiana State Law Institute is hereby directed to redesignate
28Chapter 23 of Title 6 of the Louisiana Revised Statutes of 1950, comprised of R.S. 6:1411
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1through 1413, as Chapter 25 of Title 6 of the Louisiana Revised Statutes of 1950, comprised
2of R.S. 6:1431 through 1433, and is further directed to retain the heading of the Chapter.
3 Section 3. The Louisiana State Law Institute is hereby directed to designate R.S.
46:1411 through 1416, as enacted by this Act, as Chapter 23 of Title 6 of the Louisiana
5Revised Statutes of 1950, and is further directed to apply to the Chapter the heading
6"Blockchain Basics Act".
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 488 Original 2024 Regular Session Wright
Abstract: Prohibits a governing authority from accepting or requiring central bank digital
currency and from participating in any test of central bank digital currency by any
branch or agency of the federal government.
Proposed law (R.S.6:1411) establishes the "Blockchain Basics Act".
Proposed law (R.S. 6:1412) defines "blockchain", "blockchain protocol", "central bank
digital currency", "consumer price index", "digital asset", "digital asset mining", digital asset
mining business", "governing authority", "hardware wallet", "home digital asset mining",
"node", "nonfungible token", "self-hosted wallet", "staking", and "staking as a service".
Proposed law (R.S. 6:1413) prohibits a governing authority from accepting or requiring a
payment using central bank digital currency.
Proposed law (R.S. 6:1413) prohibits a governing authority from requiring participation in
any test of a central bank digital currency by the federal government.
Proposed law (R.S. 6:1414) provides that no governing authority shall prohibit, restrict, or
impair an individual's ability to use digital assets to purchase goods and services.
Proposed law (R.S. 6:1415) provides for the establishment of digital asset mining businesses
in the states.
Proposed law (R.S. 6:1415) prohibits certain limitations on governing authority zoning
restrictions.
Proposed law (R.S. 6:1416) exempts certain individuals engaged in home digital asset
mining or node operating from licensure requirements.
Proposed law (R.S. 6:1416) provides that individuals shall not be considered as offering a
security or investment contract when engaged in home digital asset mining or node
operating.
(Adds R.S. 6:1411-1416)
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