About 100 people responded to a call from cryptocurrency advocacy groups Digital Chamber of Commerce, Satoshi Action Fund, and the Texas Blockchain Council to show Texas lawmakers they were against legislation targeting cryptocurrency mining companies. .
Gathering at the Texas Capitol in Austin on April 25, cryptocurrency enthusiasts, state legislators, industry leaders, and even some members of the Capitol Police gathered to discuss the possible future of Bitcoin (BTC) mining in the Lone Star State if Senate Bill 1751 advances in the legislature. The proposed legislation would amend sections of the Texas tax and utility code to add restrictions on cryptocurrency mining companies.
The bill passed the Texas Senate Committee on Business and Commerce, as well as a vote on the full Senate. As of April 24, the state House of Representatives had held a first reading of the legislation, after which it passed to the State Affairs Committee.
Under the current version of SB 1751, cryptocurrency mining companies that participate in a program intended to compensate them for load reductions on the state’s electric grid through the Texas Electric Reliability Board would have their incentives limited to 10%. In addition, certain companies that operate data centers would also not receive a reduction in state taxes beginning in September 2023.
“Fights over mining are not really about mining,” Perianne Boring, CEO of the Digital Chamber of Commerce, told Cointelegraph at the event. “It’s not really about environmental concerns. What it’s really about is controlling energy use.” He clarified:
“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.”
‘Digital Freedom rally’ to oppose Senate Bill 1751 in Texas State Capitol #Bitcoin $BTC pic.twitter.com/lwAzAbSnY0
— Cointelegraph (@Cointelegraph) April 25, 2023
If passed, the bill could potentially threaten the mining operations of many companies in Texas, a major player in the BTC hash rate following the Chinese crackdown. Riot Platforms and White Rock Management run mining rigs in Texas. However, Argo Blockchain and Mawson Infrastructure Group have announced plans to sell their Texas facilities to Galaxy Digital and a Singapore-based fund manager, respectively.
Satoshi Action Fund CEO Dennis Porter said he had been following the move on the Texas bill, discussing its potential impact with local lawmakers. According to Porter, who advocates for cryptocurrency-friendly legislation with policy makers across the United States, much of the opposition to mining tends to be at the county rather than state level – one exception being the Proof mining moratorium. of-Work of New York approved in 2022-.
“When you target an industry the way they’re targeting with this bill, that’s bad policy no matter what industry you’re targeting,” Porter told Cointelegraph. “It’s not a ban [como la de Nueva York]but it is very limiting space and will hurt the growth of Bitcoin mining.”
Porter added that while SB 1751 had not been signed into law, it could potentially discourage investors from coming to the state. He said that he had seen many policy makers respond to crypto and blockchain based on complaints rather than the innovative aspects of the technology.
“You shouldn’t punish the whole industry because a bad actor gets in. […] What we want to see is policy and regulations that recognize these bad actors and try to limit their ability to get into the space, but that doesn’t kill the entire industry overnight.”
The Consensus 2023 conference will take place in Austin from April 26-28 and will feature speakers from across the cryptocurrency and blockchain space. Cointelegraph staff will be present.
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