Gold-backed state digital currency gains traction in US

As debates on digital currencies persist, several U.S. states are making strides in exploring a gold-backed state digital currency, regulating bitcoin mining, and addressing legal challenges in the cryptocurrency realm.

Amid ongoing discussions among notable U.S. politicians regarding central bank digital currencies, Texas is considering a novel approach: a state-level digital currency supported by gold. This pioneering idea holds the potential to greatly influence the trajectory of digital currencies.

Gold digital currency in Texas may be coming

Two Texas legislators recently proposed congruent bills advocating for the establishment of a state-level digital currency underpinned by gold. As per the drafted legislation, each unit of the digital currency would correspond to a particular portion of a troy ounce of gold kept in trust.

When a specific quantity of the digital currency is purchased, the comptroller would use the funds obtained to buy a matching amount of gold. While neither bill has advanced or been put up for a vote, both stipulate that the act is set to commence on Sept. 1, 2023.

Concurrently, a Texas senate committee passed a bill designed to limit incentives for cryptocurrency miners operating within the state’s regulatory framework. This legislation aims to curtail the participation of crypto firms in a program that rewards them for alleviating pressure on the Texas power grid.

Additionally, beginning in September 2023, some crypto mining companies will no longer benefit from state tax reductions for their involvement in the program.

Meanwhile, in California, the department of financial protection and innovation declared that Robinhood, a popular cryptocurrency and stock trading platform, is expected to pay over $10 million in penalties for “operational and technical failures that negatively affected everyday investors.”

The settlement comes after a thorough investigation led by the north american securities administrators association, along with securities regulators from seven states.

Major cryptocurrency exchange Coinbase is supporting a fresh legal initiative to overturn the U.S. department of the treasury’s decision to impose sanctions on crypto mixer Tornado Cash.

A group of six individuals, backed by Coinbase, lodged the lawsuit, requesting that the U.S. office of foreign asset control (OFAC) address the first two counts from the initial complaint filed in September 2022.

In a separate development, Arkansas’ Congress passed legislation aiming to regulate bitcoin mining operations.

The bill, pending the governor’s approval, would ensure that crypto miners receive the same treatment as data centers, prohibiting the government from enforcing unique requirements on digital asset mining enterprises.

The development echoes a recent effort in Montana, where the Senate endorsed a bill to protect crypto miners in late March.

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