News Summary
A legislative proposal in Louisiana to enhance the use of gold and silver as currency has stalled due to bipartisan opposition in the House Commerce Committee. The bill aimed to create a framework for consumers to store and use physical gold securely, allowing transactions through linked debit cards. Despite support claiming it would boost consumer confidence, significant skepticism from committee members and the Louisiana Bankers Association led to the bill’s deferral by Representative Raymond Crews, diminishing its chances of passing this session.
Louisiana’s Gold and Silver Currency Bill Stalls Amid Bipartisan Opposition in Legislative Committee
BATON ROUGE, Louisiana – A proposed legislative measure intended to enhance the use of gold and silver as currency in Louisiana has been halted in a legislative committee amid evident bipartisan opposition. The bill, known as House Bill 386, was pulled by Republican state Representative Raymond Crews of Shreveport after discussions spread over two hours.
The House Commerce Committee displayed a clear stance against the legislation, which aimed to create a practical framework for consumers to store physical gold purchased online. Under this proposal, gold would be securely held in a vault monitored by the state treasurer. Consumers would then have the ability to convert the value of their gold into cash through linked debit cards.
This initiative follows earlier legislation enacted in 2024 led by Republican Senator Mark Abraham, which recognized gold and silver as legal tender within the state. Crews asserted that his bill sought to provide a more practical and convenient way for consumers to utilize precious metals as a currency, shifting their role from mere investment tools.
Supporters of the bill claimed that it would foster consumer confidence in using precious metals for day-to-day transactions and further open the gold market to individuals in the working class. It was also noted that similar measures had seen success in other states, including Arkansas and Florida. Advocates highlighted that consumers may benefit from a potential shield against capital gains taxes if the value of their gold method increases, although the IRS has yet to acknowledge the validity of such a tax exemption.
Despite these arguments, skepticism arose from various committee members, including Republican Representative Kim Carver of Mandeville. Carver raised questions around the necessity of state involvement, pointing out that private companies already offer similar services through digital applications like Glint. He expressed doubt about whether state intervention would yield more effective solutions compared to existing private market offerings.
The bill faced significant opposition from the Louisiana Bankers Association, which viewed the proposal as an attempt to establish a state banking entity that could compete with the private sector. A spokesperson for the association expressed disbelief over claims that the legislation would eliminate tax liabilities for consumers involved in precious metals trading, describing such assertions as not credible.
In light of the bipartisan resistance, Representative Crews voluntarily deferred the bill, effectively diminishing its chances of passing in the current legislative session. Should it have progressed, the legislation aimed to provide clear definitions for terms critical to its implementation, including “bullion,” “bullion depository,” “currency,” and “deposit” related to gold and silver currencies.
The conversation over the use of gold and silver as currency continues against the backdrop of rising inflation rates, which proponents argue has escalated interest among consumers seeking alternative forms of currency. Nevertheless, the failure of House Bill 386 indicates a considerable challenge in aligning legislative support for such measures within Louisiana, especially amid concerns about established financial institutions and existing market solutions.
Deeper Dive: News & Info About This Topic
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
