Louisiana has become the latest US state to support cryptocurrency mining, as more regions in the country are warming up to digital assets. A newly signed bill is expected to protect the rights of crypto mining individuals and businesses, who can continue to operate in the state as long as they are in compliance with local regulations. The US crypto market evolving into the largest in the world with its industry size projected to reach the valuation of $23,220 million by the end of the year.
Rising Adoption of Crypto Mining Businesses in the US
The governor of Louisiana has signed a bill to foster the growth of businesses related to crypto mining activities in the state, while the state has banned the use of central bank digital currencies, or CBDCs. The state of Louisiana is among others in the US that are tailoring laws around crypto that could open job opportunities and revenue streams for the state treasury.
Bill HB 488 protects the rights of crypto mining individuals and businesses to continue operations but while being in compliance with local noise ordinances. Businesses conducting crypto mining on a commercial level have been directed to set up shops in the industrial zones located across the state, the bill notes.
Furthermore, the bill now restricts all foreign parties from controlling digital mining businesses.
Louisiana’s support for crypto mining could help generate revenue and also open job opportunities in the state, that reportedly houses over 4.6 million citizens. However, crypto mining is infamous for consuming loads of electricity, disrupting power supply for local residents.
The global cryptocurrency mining market was valued at $1.92 billion (roughly Rs. 16,017 crore) in 2022 and is reportedly projected to reach $7 billion (roughly Rs. 58,398 crore) by 2032. As per JP Morgan, the Bitcoin mining sector is reportedly is garnering interest from investors.
The states of Oklahoma, Arkansas, Kentucky, and Florida are taking similar pro-crypto mining steps, while the federal government is working on comprehensive legislation to oversee the overall crypto sector.
Crypto Mining in Other Countries
Owing to the electrical load crypto mining businesses put on power grids, several countries have decided to ban their operations. In May, Venezuela banned crypto mining and seized thousands of mining computers.
Norway has also cracked down on crypto mining businesses this year in April.