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As the digital currency debate continues, several US states are taking steps to explore gold-backed state digital currencies, regulate bitcoin mining, and address legal challenges in the cryptocurrency space.
Amid ongoing discussions among leading US politicians regarding central bank digital currencies, Texas is considering a new approach: a state-grade digital currency backed by gold. This pioneering idea has the potential to greatly impact the digital currency’s trajectory.
Gold digital currency in Texas may be coming
Two Texas legislators recently proposed congruent legislation advocating the creation of a state-level digital currency backed by gold. As per the draft law, each unit of digital currency will correspond to a certain portion of one troy ounce of gold held in a trust.
When a certain amount of digital currency is purchased, the financial controller will use the funds obtained to purchase the appropriate amount of gold. While neither bill has been submitted or put up for a vote, both stipulate that the bill will begin on September 1, 2023.
Simultaneously, a Texas senate committee passed a law designed to limit incentives for cryptocurrency miners operating within the state’s regulatory framework. This law aims to limit crypto companies’ participation in programs that reward them for reducing pressure on the Texas power grid.
In addition, starting September 2023, some crypto mining companies will no longer benefit from the state tax deduction for their involvement in the program.
Meanwhile, in California, the department of financial protection and innovation stated that Robinhood, a popular cryptocurrency and stock trading platform, was expected to pay more than $10 million in fines for “operational and technical failures that negatively impact everyday investors.”
The settlement comes after a thorough investigation led by the North American securities administrators’ association, along with the securities regulators of seven states.
Major cryptocurrency exchange Coinbase is backing a new legal initiative to overturn the US Treasury department’s decision to impose sanctions on crypto mixer Tornado Cash.
A group of six people, backed by Coinbase, filed the lawsuit, asking the US Office of Foreign Assets Control (OFAC) to address the first two allegations from an initial complaint filed in September 2022.
In a separate development, the Arkansas Congress passed legislation aimed at regulating bitcoin mining operations.
The bill, pending governor approval, will ensure that crypto miners receive the same treatment as data centers, barring the government from imposing special conditions on digital asset mining companies.
The developments echo a recent effort in Montana, where the Senate passed a bill to protect crypto miners in late March.
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