Texan lawmakers propose gold-backed digital currency, as other US politicians debate CBDCs
As US politicians like Ted Cruz and Ron DeSantis voice their opposition to central bank digital currencies (CBDCs), two lawmakers in Texas have proposed bills to create a state-based digital currency backed by gold. The digital currency would represent a specific fraction of a troy ounce of gold held in trust, and once purchased, the comptroller would use the funds received to buy an equivalent amount of gold. Although neither bill has been passed or presented for a vote, they state that the act will take effect from September 1, 2023.
In other news, a senate committee in Texas passed a bill that would remove incentives for crypto mining firms operating in the state’s regulatory environment. Meanwhile, the California Department of Financial Protection and Innovation announced that Robinhood will pay more than $10m in penalties for operational and technical failures that harmed investors, following a series of system outages in March 2020.
Coinbase has also backed a new legal challenge aiming to overturn the US Treasury’s decision to sanction crypto mixer Tornado Cash. The challenge claims that the Office of Foreign Asset Control exceeded its statutory powers and violated free speech rights. In addition, Arkansas has passed a bill that regulates Bitcoin mining activity, giving crypto miners the same rights as data centers.