In the most recent legislative session, the Texas Legislature approved a pair of bills to bolster the Bitcoin mining industry. Governor Greg Abbott is eager for Texas to take the lead in the crypto arena by reinforcing its position as a hub for Bitcoin mining. Nevertheless, the state is also contending with concerns about the impact of Bitcoin mining on its power grid.
Lee Bratcher, head of the Texas Blockchain Council, remains optimistic about Texas’ ability to emerge as a hub for cryptocurrency enterprises, despite some concerns. Bratcher argues that the mining bill being considered is not punitive, but rather a way to bring the industry in line without the need for assistance. He further warns that the bill could have unintended consequences, negatively impacting both the mining sector and the broader energy market.
About the Bills
In the most recent legislative session, the Bitcoin mining sector in Texas obtained backing from the state legislature via the approval of two bills, namely SB 1929 and HB 591. These bills are currently awaiting the signature of Governor Greg Abbott. SB 1929 requires miners with energy capacity surpassing 75 megawatts to enroll with the Public Utilities Commission (PUC) of Texas as large loads operators. Afterwards, the PUC discloses its information to the Electricity Reliability Council of Texas (ERCOT), which handles the grid.
The proposed legislation aligns with the provisional interconnection procedure put in place by ERCOT’s Large Flexible Loads Taskforce in March 2022. This task force is responsible for formulating regulations that oversee the handling of substantial electricity loads, including those produced by Bitcoin mining activities.
Moreover, HB 591 will authorize tax breaks for enterprises that take advantage of gas that was previously discarded, such as data centers. These bills demonstrate that Texas remains the favored destination for Bitcoin, blockchain, and digital asset-related endeavors.
Texas on Bitcoin
For nearly ten years, Texas has been at the forefront of Bitcoin regulation. It was the pioneer state to address Bitcoin regulation, with the release of a memo by the Texas Banking Commissioner stating that the primary cryptocurrency should be regarded as a speculative investment, not currency. With China’s recent crackdown on crypto mining, Texas has garnered interest from worldwide mining giants. Consequently, new companies are being embraced in nearby communities, industrial areas are being reopened, and job prospects are on the rise.
