Texas’s 88th legislative session has proven to be a fruitful one for the local bitcoin mining industry, solidifying the state’s position as a leading hub for bitcoin innovation. Several bills that have either been passed or blocked are expected to maintain Texas’s appeal to miners, drawing comparisons to the tech hub of Silicon Valley.
Lee Bratcher, President of the Texas Blockchain Council, expressed confidence that Texas “would not let history repeat itself,” emphasizing the state’s determination to become the “Silicon Valley of the Digital Asset industry” and not be passed by.
One significant development was the blockage of Senate Bill (SB) 1751, which had been labeled as an “anti-mining” bill.
This legislation aimed to restrict lucrative energy credits enjoyed by local bitcoin miners, including Riot Blockchain, which garnered $9.5 million in credits in July of the previous year. However, the bill did not reach the Governor’s desk, resulting in relief for bitcoin miners in Texas.
Read more on the subject : Why Texas’ Anti-Bitcoin Mining Bill Is Powerless
Another notable achievement was the passage of Senate Bill 1929, which requires large bitcoin mining operations to register with the Electric Reliability Council of Texas (ERCOT).
Supporters of the bill view it as a necessary step towards enhancing transparency within the industry. Lee Bratcher voiced his support for the legislation, stating that “it would strengthen communication between ERCOT and bitcoin miners.”
In addition, two House Bills, HB 591 and HB 1666, have garnered attentions and are expected to be signed by Texas Governor Greg Abbott after successful votes in the House and the Senate.
HB 591 introduces a tax incentive for using flared gas in on-site bitcoin mining, promoting the utilization of this energy resource that would otherwise go to waste. Critics, however, express concerns about the reliance on fossil fuels for mining purposes.
HB 1666 establishes a proof-of-reserves regime for digital asset exchanges, ensuring they maintain assets sufficient to meet customer obligations and submit statements to the Texas Department of Banking regarding liabilities. This move aims to restore confidence among skeptical investors following the FTX bankruptcy incident.
Read more on the subject : After The FTX Fraud, It’s Time to Be Even More Bullish on Bitcoin
The legislative wins in Texas have attracted praise from various stakeholders.
With its favorable legislative environment and a growing community of bitcoin enthusiasts, Texas is on track to become the “Silicon Valley” of the bitcoin industry.
The state’s commitment to embracing the potential of blockchain technology and attracting bitcoin startups and entrepreneurs, positions it as a leading player in the global bitcoin landscape.
As the bitcoin mining industry continues to flourish in Texas, the state is poised to drive innovation, economic growth and pave the way for a digital asset revolution in the heart of America.
Grant is a freelance fintech writer who’s a member of the class of 2017, runs his own node from a dusty old laptop, and mines Bitcoin.
If you’d like to learn how he can help you build your company’s brand awareness and online presence using awesome content, click here: fintech content