MAJOR DEVELOPMENTS IN CRYPTO-FRIENDLY U.S. STATES AND CITIES
In a significant development for the blockchain industry, Oklahoma and Louisiana have passed the Blockchain Basics Act in 2024, paving the way for clearer regulations and protections. This landmark legislation establishes essential rights for individuals and businesses operating in the digital asset space.
Key Provisions
The Blockchain Basics Act focuses on two critical areas:
Digital Asset Custody: Recognizing the right to securely store and manage cryptocurrencies, providing individuals and businesses with confidence in their digital assets.
Mining Protection: Safeguarding the right to mine digital assets on residential property without licensure, promoting decentralized and community-driven mining operations.
Similar bills have been introduced in Ohio, South Carolina and Mississippi, demonstrating growing support for blockchain-friendly legislation. The federal government's delay in establishing clear blockchain regulations may prompt states and local governments to take matters into their own hands. If federal inaction continues, states will likely accelerate their efforts to create favorable environments for blockchain businesses, potentially leading to a regulatory patchwork with varying state laws and regulations and increased competition among states to attract blockchain investment. Some local economies will reap the benefits of blockchain innovation, while others lag behind.
Several states and cities are pioneering the use of cryptocurrency for tax payments, government fees, and other public services. Colorado, Louisiana, and Detroit permit taxpayers to pay state taxes and city fees with cryptocurrency. Florida launched a pilot program enabling businesses to pay state fees in cryptocurrency. California digitized 42 million car titles onto the Blockchain, enhancing security and efficiency. Wyoming and New Hampshire exempts crypto-related businesses from money transmission license regulations, and neither state has a state income tax.
While, the Blockchain Basics Act focuses primarily on individual custody and mining, it's clear that US states are taking significant strides toward embracing blockchain technology. States are sending a strong signal that they're open for business and committed to fostering a thriving blockchain ecosystem. The federal government must act swiftly to establish a comprehensive framework, or risk being left behind as states and local governments forge ahead.