Texas has been embracing the bitcoin mining industry as legislators pass bills showing support for miners. Two bills, SB 1929 and HB 591, have recently made it through the legislative stage and are awaiting Gov. Greg Abbott’s signature. If signed, they will take effect on Sept. 1.
SB 1929 requires miners with an energy capacity larger than 75 megawatts (MW) to register with the Public Utilities Commission (PUC) of Texas as large load operators. The bill aligns with a policy drafted by the Electricity Reliability Council of Texas (ERCOT) to manage significant electric loads, such as those generated by bitcoin miners. Meanwhile, HB 591 introduces tax exemptions for companies utilizing otherwise wasted gas, including data centers.
According to Lee Bratcher, president of the Texas Blockchain Council (TBC), these bills demonstrate that Texas remains the jurisdiction of choice for bitcoin, blockchain, and digital assets. However, another bill, SB 1751, which aimed to cap the industry’s participation in cost-saving demand-response programs, stalled at the committee stage. Demand-response programs offer power credits to miners who curtail their operations during peak energy demand periods.
Although SB 1751 did not progress, the bill can be reintroduced in the next session, which begins in January 2025. In the meantime, Texas is moving forward with establishing itself as one of the largest bitcoin mining hubs worldwide, due to inexpensive energy and accommodating regulators.
While Texas has shown support for bitcoin mining, other states have taken a different stance. New York imposed a two-year moratorium on new fossil fuel-based bitcoin mines, and Oregon is considering legislation that would require data centers to reduce their greenhouse gas emissions. In contrast, Arkansas and Montana have passed legislation protecting mining, though similar bills in Missouri and Mississippi have failed.
At the federal level, policy development for bitcoin mining has stagnated. A proposed 30% tax on bitcoin mining by the Biden administration has not progressed, and it is unlikely to return as part of the US budget. As such, states are stepping in to be “incubators of innovation,” according to TBC’s Bratcher.
In summary, Texas is solidifying its position as a premier destination for the bitcoin mining industry through the passing of supportive bills. However, the future of such regulation at the federal level remains uncertain, with individual states taking the lead on developing policy in the meantime. Despite some opposition, Texas lawmakers continue to push for the growth and development of the cryptocurrency and blockchain markets, setting a high standard for other states to follow.
Source: Coindesk
