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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 22 of Title 49 of the Louisiana Revised Statutes of 1950, to be comprised
3 of R.S. 49:1501 through 1506, relative to digital assets and cryptocurrency; to
4 prohibit certain government regulations of digital assets; to provide for a short title;
5 to provide for definitions; to prohibit governing authorities from requiring use,
6 payment, or testing of central bank digital currency; to provide for node operating
7 and the use of home digital asset mining; to provide for exceptions; to provide for
8 limitations of liability; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. Chapter 22 of Title 49 of the Louisiana Revised Statutes of 1950,
11comprised of R.S. 49:1501 through 1506, is hereby enacted to read as follows:
12 CHAPTER 22. BLOCKCHAIN BASICS ACT
13 §1501. Short title
14 This Chapter shall be known and may be cited as the "Blockchain Basics
15 Act".
16 §1502. 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 Board of
12 Governors of the Federal Reserve System or a federal agency which is made directly
13 available to a consumer by such entities, or which is processed or validated directly
14 by such 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) "Digital asset" means virtual currency, cryptocurrencies, natively
17 electronic assets, including stablecoins and non-fungible tokens or NFTs, and other
18 digital-only assets that confer economic, proprietary, or access rights or powers.
19 (5) "Digital asset mining" means using electricity to power a computer or
20 node for the purpose of securing a blockchain network.
21 (6) "Digital asset mining business" means a group of computers working that
22 consume more than one megawatt of energy for the purpose of securing a blockchain
23 protocol.
24 (7) "Governing authority" means any board, commission, department or
25 other agency of the state or any political subdivision in the state.
26 (8) "Hardware wallet" means a physical device that is not continuously
27 connected to the internet and allows an individual to secure and transfer digital
28 assets. The term "hardware wallet" also includes a physical device under which the
29 owner of digital assets retains independent control over the digital assets.
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1 (9) "Home digital asset mining" means using digital asset mining in an area
2 zoned for residential use.
3 (10)(a) "Node" means a computational device that does any of the following:
4 (i) Communicates with other devices or participants on a blockchain to
5 maintain consensus and integrity of that blockchain.
6 (ii) Creates and validates transaction blocks.
7 (iii) Contains and updates a copy of a blockchain.
8 (b) A node does not exercise discretion over transactions initiated by the end
9 user of the blockchain protocol.
10 (11) "Nonfungible token" or "NFT" has the meaning ascribed to it in R.S.
11 6:1382.
12 (12) "Self-hosted wallet" means a digital interface that is used to do both of
13 the following:
14 (a) Secure and transfers digital assets.
15 (b) Retain independent control over the secured digital assets by the owner
16 of the digital asset.
17 (13) "Staking" means the act of committing digital assets for a period of time
18 to validate and secure a specific blockchain network.
19 (14) "Staking as a service" means the provision of technical staking services,
20 including the operation of nodes and the associated infrastructure necessary to
21 facilitate participation in blockchain networks' consensus mechanisms.
22 §1503. Prohibitions on use and testing of central bank digital currency
23 A. A governing authority shall not accept or require a payment using central
24 bank digital currency.
25 B. A governing authority shall not participate in any test of central bank
26 digital currency by the Board of Governors of the Federal Reserve System or any
27 branch or agency of the federal government.
28 §1504. Permitted uses of digital assets
29 A governing authority shall not prohibit, restrict, or otherwise impair the
30 ability of an individual or business to do either of the following:
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1 (1) Accept digital assets as a method of payment for legal goods and
2 services.
3 (2) Self-custody digital assets using a self-hosted wallet or hardware wallet.
4 §1505. Permitted uses of home digital asset mining; exceptions
5 A. It shall be legal in this state to do both of the following:
6 (1) Participate in home digital asset mining as long as the person engaging
7 in home digital asset mining complies with all local noise ordinances.
8 (2) Have a digital asset mining business in any area that is zoned for
9 industrial use, provided they comply with all current ordinances.
10 B. No political subdivision of this state shall do any of the following:
11 (1) Place any specific limit on sound decibels generated from home digital
12 asset mining other than general limits set for sound pollution put forth by the
13 political subdivision.
14 (2) Place any specific limit on sound decibels generated from a digital asset
15 mining business other than limits set for sound pollution which generally apply to
16 industrial zoned areas.
17 (3) Impose any other requirements on a digital asset mining business that is
18 also not a requirement for data centers in its area of jurisdiction.
19 (4) Change the zoning of a digital asset mining business without going
20 through the proper notice and comment.
21 C. A digital asset mining business shall be able to appeal a change in zoning
22 to the proper court of jurisdiction. A judge shall find a violation of this Section and
23 nullify such a change in zoning if the judge determines the change was done to
24 discriminate against a digital asset mining business.
25 §1506. Node operating; home digital asset mining; exceptions; liability
26 A. It shall be legal in this state to operate a node for the purpose of
27 connecting to a blockchain protocol, or a protocol built on top of a blockchain
28 protocol, and transferring digital assets on a blockchain protocol, or to participate in
29 staking on a blockchain protocol.
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1 B. For the avoidance of doubt, a business offering to provide digital asset
2 mining or staking as a service for individuals or to other businesses shall not be
3 considered as offering a security or investment contract pursuant to Part X of
4 Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950.
5 C. Notwithstanding any other provision of law to the contrary, no individual
6 or entity shall face liability related to a specific transaction merely by validating such
7 transaction if such individual or entity does any of the following:
8 (1) Engages in digital asset mining.
9 (2) Operates a node or series of nodes on a blockchain network.
10 (3) Provides digital asset mining or staking or offers staking as a service for
11 individuals or other businesses.
12 D. Nothing in this Chapter restricts or prohibits the attorney general from
13 initiating actions pursuant to the Unfair Trade Practices and Consumer Protection
14 Law, including but not limited to actions brought for fraud, in connection with
15 offering or providing digital asset mining or staking as a service to individuals or
16 other businesses.
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 Reengrossed 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. 49:1501) establishes the "Blockchain Basics Act".
Proposed law (R.S. 49:1502) 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. 49:1503) prohibits a governing authority from accepting or requiring a
payment using central bank digital currency.
Proposed law (R.S. 49:1503) prohibits a governing authority from requiring participation in
any test of a central bank digital currency by the federal government.
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Proposed law (R.S. 49:1504) 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. 49:1505) provides for the establishment of digital asset mining
businesses in the states.
Proposed law (R.S. 49:1505) prohibits certain limitations on governing authority zoning
restrictions.
Proposed law (R.S. 49:1506) provides that a person or entity may operate a node for the
purpose of connecting to certain blockchain protocols and transferring digital assets on a
blockchain protocol, or to participate in staking on a blockchain protocol.
Proposed law (R.S. 49:1506) provides that individuals shall not be considered as offering
a security or investment contract when engaged in home digital asset mining or node
operating.
Proposed law (R.S. 49:1506) limits certain liabilities. Proposed law further permits
enforcement by the attorney general for unfair trade practices
(Adds R.S. 49:1501-1506)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Redesignate proposed law.
2. Remove certain exceptions to licensing requirements.
3. Make technical changes.
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