• Crypto enthusiasts, state lawmakers, industry leaders, and Capitol Police gathered at the Texas Capitol in Austin to oppose legislation targeting crypto mining firms.
• The proposed legislation would amend sections of Texas’ utilities and tax code to add restrictions for crypto mining companies.
• The bill seeks to cap incentives for crypto mining companies participating in a program intended to compensate them for load reductions on the state’s power grid.
Rally at Texas State Capitol Opposes Bill Cutting Mining Incentives
Crypto advocates gathered at the Texas State Capitol on April 25th to show their opposition against Senate Bill 1751 which seeks to cut incentives for cryptocurrency mining operations in the Lone Star State. Roughly 100 people attended the rally, including state lawmakers, industry leaders and members of the Capitol Police.
SB 1751 Seeks To Cap Incentives For Crypto Mining Companies
If passed, SB 1751 would amend sections of Texas’ utilities and tax code in order to add restrictions on crypto mining companies that participate in a program intended to compensate them for load reductions on the state’s power grid through Electric Reliability Council of Texas (ERCOT). The bill proposes capping these incentives at 10%. Additionally, certain data center-operating companies will not receive an abatement on state taxes starting September 2023.
Concerns Over Controlling Energy Use
Perianne Boring, CEO of the Chamber of Digital Commerce commented that “the fights about mining aren’t really about mining…What it’s really about is controlling energy use. 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.” Satoshi Action Fund CEO Dennis Porter also expressed his concerns stating “when you target one industry the way they are with this bill, that’s bad policy no matter what the industry you’re targeting.”
Texas A Major Player Following China’s Crackdown
If passed into law, SB1751 could potentially be detrimental for many firms operating Bitcoin (BTC) hash rate in Texas as its become increasingly important following China’s crackdown on crypto operations. This has resulted in miners having more incentive than ever before to move their businesses from China over other countries such as Canada or Venezuela where electricity costs can often be cheaper due excessive hydropower generation such as hydroelectric dams
Conclusion
In conclusion by passing SB1751 Texas lawmakers could have wide-reaching implications not only for miners but also blockchain technology adoption around the world. As such various groups have come together under one collective goal—to oppose Sb1751—in order ensure that innovation remains freed from unnecessary regulations or restrictions that could stifle progress and advancement within this space