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House Commerce debate on gold-and-silver currency stalls; bill deferred after questions, amendment adopted
Summary
Lawmakers spent more than two hours probing House Bill 386, which would create a state-backed platform to let banks and credit unions offer transactional gold and silver accounts. An amendment clarifying collateral use was adopted, but the full bill was voluntarily deferred for further work.
Representative Jason Cruz introduced House Bill 386, saying the measure would create a state‑monitored framework to let banks and credit unions offer accounts that use gold and silver as the store of value for transactions. "This bill provides an incredible opportunity for the state of Louisiana," Cruz said in committee, describing the idea as "just another way to pay" that attaches debit‑card convenience to bullion held in an approved depository.
Supporters including Mike Carter of the National Security Investment Consultant Institute told the committee the proposal would expand access to a perceived hedge against inflation and argued state backing would create consumer trust. "Having the state behind this, having the financial institutions overseeing part of this, make sure that they're not going to get taken advantage of," Carter said.
The committee adopted a technical amendment that added language making explicit that a depositor may use currency in the program as collateral for a loan. Ms. Vygras read the amendment on the record; Representative Mena offered it and the chair called for objections. "Any objection to the adoption of that amendment? Alright. Seeing none, 15 83 will be adopted," the clerk announced.
Banking industry representatives pressed several questions and raised formal opposition. Joe Jendron of the Louisiana Bankers Association said the measure would create "public bank‑like" functions because the treasurer's office or a vendor would accept deposits and issue payment cards — activities bankers view as outside government role. The association also flagged likely costs in the fiscal note for staffing and contracting. Treasury staff represented at the hearing said the treasurer's office was supportive in principle but anticipated needing audit and outside counsel resources.
Committee members asked about implementation details: where bullion would be held, how spot pricing and consumer protections would work, whether private apps already offer similar services (Glint, in particular), and the interplay with capital‑gains tax rules. Treasury designee Kim Callaway told the panel the office had discussed vendor models and that the office would contract out most operations while retaining audit and oversight functions.
After extended questioning and additional public testimony for and against, the bill’s sponsor asked to defer the measure to continue negotiations. "If the bill were to pass, we'd likely ask for an amendment on the floor to put some information in there about it being fully insured," Kim Callaway said earlier; Cruz told the committee he would work with stakeholders if the bill were returned for further consideration. The author then moved to defer the bill and the motion carried without objection: HB 386 was deferred for further work.
Ending: The committee left open the option to refile or reintroduce a tightened version that addresses banking concerns, insurance and vendor selection, and federal tax questions. The sponsor said he would continue talks with the treasurer’s office and industry groups before the measure returns to the committee.
