Two identical bills have been introduced in Texas, proposing the creation of a gold-backed digital currency, marking the first of its kind at the state level. Meanwhile, crypto miners face reduced incentives as a result of new legislation passed by a Texas Senate committee.
State-Based Gold-Backed Digital Currency Proposed in Texas
A unique state-based gold-backed digital currency project has emerged in Texas. On the same day, two Texan lawmakers put forward identical proposals to create a digital currency with each unit representing a specific fraction of a troy ounce of gold. According to the bills, the state’s comptroller would use the funds received from the purchase of the digital currency to acquire an equivalent amount of gold. While neither bill has passed or been brought to a vote, both stipulate that the act will take effect from September 1, 2023.
Also Read: Bitcoin mining firm Core Scientific filed for bankruptcy in Texas
Crypto Miners Face Reduced Incentives Under New Legislation
In addition to the digital currency proposals, another bill has been approved by a Texas Senate committee, which would significantly diminish incentives for crypto miners operating within the state’s regulatory framework. The legislation restricts crypto firms participating in a program designed to compensate them for load reductions on Texas’ power grid. The anticipated demand for such companies would be capped at “less than 10 percent of the total load required by all loads in the program.” Moreover, starting September 2023, specific crypto mining companies would no longer receive state tax reductions for their participation in the program.
Robinhood to Pay $10 Million Settlement for Failing Investors
The California Department of Financial Protection and Innovation has announced that Robinhood, the company behind the popular stock and cryptocurrency trading platform, is expected to pay more than $10 million in penalties for “operational and technical failures that harmed main street investors.” The settlement comes after a joint investigation by the North American Securities Administrators Association and securities regulators from multiple states. Robinhood experienced a series of system outages in March 2020, preventing users from executing trades and causing service disruptions.
The proposal of a state-based gold-backed digital currency in Texas could signify a new direction for digital currencies in the United States, especially if it gains legislative approval. However, the future of crypto miners in the state remains uncertain, as new regulations threaten to reduce incentives for their operations.
