Texas Legislature Approves Bills Impacting Bitcoin Mining Industry
Texas Legislature Makes Progress in Bitcoin Mining Legislation. The 88th session of the legislative body has seen the approval of several bills aimed at enhancing the attractiveness of Texas for local bitcoin miners. These legislative measures are expected to have a positive impact on the state’s crypto-mining industry.
Texas Poised to Become Digital Asset Hub, Says Texas Blockchain Council President. Lee Bratcher, the president of the Texas Blockchain Council, envisions Texas following in the footsteps of Silicon Valley, emerging as a prominent global center for digital assets.
If you want the real scoop on how the Texas Anti-Bitcoin mining bill was defeated this is it 👇 There are a lot of people taking credit but the ones who were the most instrumental are the same ones who refuse to take the credit. @lee_bratcher thank you for your hidden service. https://t.co/twxLfx7Fiu
— Kristine Cranley (@KristineCranley) June 4, 2023
Bills Set to Transform Bitcoin Mining Landscape in Texas
In a significant development for the Texas bitcoin mining industry, Senate Bill (SB) 1751, dubbed as an “anti-mining” bill by industry insiders, was ultimately shelved. The bill aimed to restrict the lucrative energy credits that currently provide substantial benefits to local miners. This outcome preserves the existing favorable conditions for bitcoin miners in the state.
One of the beneficiaries of the energy credits was Riot Blockchain, which accumulated $9.5 million in credits within a month last year. On the other hand, the approval of Senate Bill 1929 has been well-received by bitcoin miners. This legislation requires large-scale bitcoin mining operations to register with the Electric Reliability Council of Texas (ERCOT), promoting transparency within the industry.
Bratcher voiced his enthusiastic endorsement for Senate Bill 1929, emphasizing its potential to enhance communication between ERCOT and bitcoin miners. Furthermore, the approval of House Bills HB 591 and HB 1666 is anticipated to provide further advantages for the crypto mining industry. These bills have successfully passed votes in both the House and Senate and are currently awaiting the signature of Texas Governor Abbott to become law.
Also Read: New Crypto Bills Introduced in the Legislature for the First Time
House Bill HB 591 introduces tax incentives aimed at encouraging the utilization of flared gas for on-site bitcoin mining, effectively converting an otherwise wasted energy resource into a valuable mining asset. However, this initiative has sparked controversy, with critics asserting that it could potentially contribute to increased fossil fuel consumption.
On the other hand, House Bill HB 1666 focuses on implementing a proof-of-reserves system, which mandates that crypto exchanges maintain assets sufficient to fulfill all customer obligations. This measure aims to enhance transparency and ensure the financial stability of crypto exchanges. Both bills have passed through the legislative process and are pending the approval of Texas Governor Abbott.
Although the legislative actions pertaining to the local bitcoin mining sector have largely been applauded, there have also been critical voices. Adrian Shelley, Texas director of Public Citizen, a non-profit advocacy group, has voiced concerns regarding these developments.
Shelley’s apprehension stems from potential environmental implications, particularly with regard to the use of flared gas for mining purposes. The advocacy group worries that the tax incentives provided by House Bill HB 591 may inadvertently promote increased fossil fuel consumption, exacerbating environmental challenges.
As the discussion around the impact of these bills continues, it highlights the ongoing debate surrounding the balance between economic opportunities and environmental sustainability in the realm of cryptocurrency mining.
Shelley views these legislative changes as introducing a new revenue source to an industry that was experiencing gradual cost increases, but raises concerns about the actual value this sector brings to the state. In Shelley’s perspective, the emphasis on providing tax incentives and facilitating operations for the bitcoin mining industry may divert attention and resources from other sectors that could potentially contribute more tangible benefits to Texas.
The debate surrounding the significance of the crypto mining sector and its overall impact on the state’s economy and environment continues to evolve, prompting a broader discussion on prioritization and long-term economic sustainability.
Also Read: Montana enacts “Right to Mine” bill, supporting crypto mining
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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