The Texas Legislature’s 88th session approved several bills impacting the state’s bitcoin mining sector.
These measures aim to make Texas more attractive to cryptocurrency mining businesses. Lee Bratcher, the president of the Texas Blockchain Council, believes that Texas will become a central hub for digital assets, similar to how Silicon Valley grew as a hub for technological innovation.
The effect of legislation on the bitcoin mining industry
Industry insiders viewed Senate Bill 1751 as an “anti-mining” law, and one notable effect of the legislation is that it has been shelved. This bill aimed to restrict the energy credits that benefit local miners, such as Riot Blockchain.
Bitcoin miners have praised Senate Bill 1929, contrasting it with the previous statement about Senate Bill 1751. This law requires large-scale mining operations to register with the Electric Reliability Council of Texas (ERCOT), promoting industry transparency.
Bratcher supports this legislation, believing it will enhance communication between ERCOT and miners.
Two other bills, HB 591 and HB 1666, have passed in the House and Senate and await the governor’s signature. HB 591 offers tax incentives that allow the use of wasted energy for on-site bitcoin mining, but it has raised concerns about increased fossil fuel usage.
HB 1666 implements a proof-of-reserves system for cryptocurrency exchanges. Although most people view these legislative developments positively for the local mining industry, there has been criticism.
Public Citizen, a non-profit advocacy organization, expressed concern through its Texas director Adrian Shelley. Shelley questions the actual value of the industry and sees these reforms as introducing a new value stream to a sector that was previously pricing it out.
