Texas Bitcoin Mining Laws Pass: New Legislation to Boost Crypto Industry
Texas Legislature Passes New Bitcoin Mining Laws
• The 88th session of the Texas Legislature has passed a series of bills set to influence the state’s bitcoin mining industry.
• Senate Bill 1929 mandates large-scale bitcoin mines to register with the Electric Reliability Council of Texas (ERCOT), enhancing the transparency in the industry.
• House Bills HB 591 and HB 1666 provide tax incentives for the use of flared gas in on-site bitcoin mining, transforming an otherwise wasted energy resource into a potential mining asset.
Background on Recent Bills
The 88th session of the Texas Legislature has passed a series of bills set to influence the state’s bitcoin mining industry. Lee Bratcher, president of the Texas Blockchain Council, envisions Texas becoming a major hub for digital assets, comparing it to the evolution of Silicon Valley as a global tech innovation center. Among those reaping rewards from these credits was Riot Blockchain, which earned $9.5 million in credits in one month last year.
SB 1751 Shelved
The most notable outcome was the shelving of Senate Bill (SB) 1751, which had been tagged by industry insiders as an “anti-mining” bill. The bill proposed to restrain profitable energy credits currently benefitting local miners. This bill was defeated due largely to Lee Bratcher’s hidden service and other efforts by members who refused credit for their work.
Benefits for Crypto Mining Sector
In contrast, passing Senate Bill 1929 mandates large-scale bitcoin mines to register with ERCOT, enhancing transparency in this sector. House Bills HB 591 and HB 1666 are expected to be additional boons for crypto miners; they provide tax incentives for using flared gas on-site at bitcoin mining sites, turning what would otherwise be wasted resources into potential profit centers.
Controversy over Fossil Fuel Consumption
This has stirred controversy among critics who argue that it promotes more fossil fuel consumption instead of renewable energy sources like solar or wind power – something that could have long term consequences on natural ecosystems and climate change if unchecked