Bitcoin enthusiasts, state lawmakers, industry leaders, and members of the Capitol Police gathered at Austin, Texas on April 25
They all met to discuss the possible future of Bitcoin mining in the Lone Star State, should Senate Bill 1751 pass through the legislature. The bill proposes to amend sections of Texas’ utilities and tax code to add restrictions for crypto mining companies.
Under the current version of SB 1751, crypto mining firms participating in a program intended to compensate them for load reductions on the state’s power grid through the Electric Reliability Council of Texas would have their incentives capped at 10%.
In addition, certain companies operating data centers would also not receive an abatement on state taxes starting in September 2023.
The bill passed the Texas Senate Committee on Business and Commerce and the Senate floor vote. As of April 24, the state’s House of Representatives had conducted the first reading of the legislation, whereupon it moved to the Committee on State Affairs.
If passed, the bill could potentially threaten mining operations for many firms in Texas, a major player in the BTC hash rate following China’s crackdown. Satoshi Action Fund CEO Dennis Porter said he had been monitoring the movement of the Texas bill, discussing its potential impact with local lawmakers.
The crypto advocacy groups Chamber of Digital Commerce, Satoshi Action Fund, and Texas Blockchain Council have called on Texas lawmakers to reconsider the proposed legislation. Around 100 people gathered at the Texas Capitol to show their opposition to legislation targeting crypto mining firms.
Perianne Boring, CEO of the Chamber of Digital Commerce, said that
“Bitcoin mining is a way for regulators to set a new precedent to say who is allowed to purchase energy, who is allowed to purchase power and how you are allowed to use it in a free society.”
She also said that the fight over mining is not really about mining or environmental concerns but about controlling energy use.
Satoshi Action Fund CEO Dennis Porter said that much of the pushback on mining is usually at the county level rather than the state, with one exception being New York’s Proof-of-Work mining moratorium passed in 2022.
He added that even though SB 1751 hadn’t been signed into law, it could potentially discourage investors from coming into the state. Porter also pointed out that policymakers often respond to crypto and blockchain based on complaints rather than the innovative aspects of the technology.
“You shouldn’t punish the whole industry because one bad actor comes in. What we want to see is policy and regulations that acknowledge these bad actors and try to limit their ability to come into the space but doesn’t just kill the whole industry overnight.”
In recent years, Texas has become a popular destination for crypto miners due to its low electricity costs and abundance of renewable energy sources.
Texas is currently the fourth-largest state in terms of Bitcoin hash rate, accounting for 9% of the global hash rate. The Consensus 2023 conference is taking place in Austin from April 26-28, featuring speakers from across the crypto and blockchain space.
Bitcoin Mining Laws Texas
In conclusion, the proposed Senate Bill 1751, which seeks to impose restrictions on crypto mining firms in Texas, has drawn opposition from crypto advocacy groups and industry leaders who argue that the bill could potentially threaten mining operations for many firms in the state.
They also argue that the bill is not just about mining but about controlling energy use, and that it could discourage investors from coming into the state.
While the bill has passed the Texas Senate Committee on Business and Commerce and the Senate floor vote, it remains to be seen whether it will pass the state’s House of Representatives.