As the digital currency debate continues, many US states are making strides in exploring a government digital currency backed by gold, regulating bitcoin mining, and addressing legal challenges in the cryptocurrency space.
Amid ongoing discussions among prominent US politicians regarding central bank digital currencies, Texas is considering a new approach: a nationwide digital currency backed by gold. This pioneering idea has the potential to significantly influence the course of cryptocurrencies.
Texas gold digital currency may be coming
Two Texas lawmakers recently proposed identical bills calling for the creation of a statewide digital currency backed by gold. According to the drafted legislation, each unit of digital currency will correspond to a certain portion of a troy ounce of gold held in the trust.
When a specified amount of digital currency is purchased, the controller uses the money earned to buy a matching amount of gold. While neither bill has been introduced or put to a vote, both state that the law is set to take effect on September 1, 2023.
At the same time, a Texas Senate committee passed a bill aimed at reducing incentives for cryptocurrency miners operating within the state’s regulatory framework. This legislation aims to limit crypto companies’ participation in a program that rewards them for relieving stress on the Texas power grid.
In addition, starting in September 2023, some cryptocurrency mining companies will no longer benefit from government tax rebates for participating in the program.
Meanwhile, in California, the Department of Financial Protection and Innovation announced that Robinhood, a popular cryptocurrency and stock trading platform, is expected to pay more than $10 million in fines for “operational and technical failures that negatively impact investors every day.”
The settlement follows a comprehensive investigation led by the North American Association of Securities Administrators, along with securities regulators from seven states.
A major cryptocurrency trading platform is backing a new legal initiative to overturn the US Treasury Department’s decision to sanction cryptocurrency mixer Tornado Cash.
A group of six individuals, backed by Coinbase, filed the suit, asking the US Office of Foreign Assets Control (OFAC) to address the first two counts from the initial complaint filed in September 2022.
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In a separate development, the Arkansas Congress has passed legislation intended to regulate bitcoin mining operations.
The bill, which is awaiting approval by the governor, would ensure that cryptocurrency miners receive the same treatment as data centers, barring the government from imposing unique requirements on institutions mining digital assets.
This development mirrors recent efforts in Montana, where the Senate passed a bill to protect crypto miners in late March.