Louisiana is the latest US state to support cryptocurrency mining as more regions across the country warm to the digital asset. A newly signed bill is expected to protect the rights of crypto mining individuals and companies, who can continue to operate in the state as long as they comply with local regulations. The US crypto market is shaping up to be the largest in the world, with the industry expected to reach $23.22 trillion by the end of the year.
Rising Adoption of Crypto Mining Companies in the US
The governor of Louisiana has signed a bill to encourage 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. Louisiana is among several states in the US passing laws on crypto that could open up jobs and revenue streams for the state coffers.
Bill HB 488 protects the rights of crypto mining individuals and companies to continue their operations, but in accordance with local noise ordinances. Companies that conduct crypto mining on a commercial level are directed to set up shop in industrial zones throughout the state, the accounts.
Furthermore, the bill prohibits all foreign parties from controlling digital mining companies.
Louisiana’s support for crypto mining could help generate revenue and also create jobs in the state, Reportedly is home to over 4.6 million citizens. However, crypto mining is known to consume a lot of electricity, disrupting power supply for locals.
The global cryptocurrency mining market was valued at $1.92 billion (approximately Rs. 16,017 crore) in 2022 and is Reportedly is expected to reach $7 billion (approximately Rs 58,398 crore) by 2032. According to JP Morgan, the Bitcoin mining sector Reportedly attracts the attention of investors.
The states of Oklahoma, Arkansas, Kentucky and Florida are taking similar measures to promote crypto mining, while the federal government is working on comprehensive legislation to oversee the entire crypto sector.
Cryptomining in other countries
Due to the electrical burden that crypto mining companies place on power grids, several countries have decided to ban their activities. In May, Venezuela banned crypto mining and seized thousands of mining computers.
Norway also took strict measures against crypto mining companies in April this year.
