On Thursday, the Montana Senate passed a historic bill to help struggling crypto miners from discrimination against mining operations. The bill prioritizing the crypto miners was introduced by Senator Daniel Zolnikov, a Republican.
The Montana state officially passed a bill to protect mining rights with a vote of 37-13. The passed bill shields at-home mining, and intends to prevent “discriminatory digital asset mining utility rates.” Following is the screenshot of the passed bill Senate bill:
In addition, the bill takes power from local governments, preventing them from moving against at-home mining or retroactively using zoning laws to shut down active operations. Senator Zolnikov said:
These protections, along with clarifying tax law in relation to digital assets when used as payment, will plant a flag in Montana that sends a message that we are open to embracing the digital asset mining industry.
Sources reveal that the bill is called the “Right to Mine” and was drafted with the help of the Bitcoin advocacy group Satoshi Action Fund and its CEO Dennis Porter. While this was a massive move for the miners, Porter is now focused on the next steps which include approval from the State’s House and the governor’s signature.
Montana has been a popular destination for crypto mining due to its cheap electricity rates and favorable climate conditions for cooling mining equipment. On top of it, the state government has also been relatively open to the development of the crypto industry, with several blockchain-based startups and projects being established in the area.
With the new law being passed, there is a possibility that it could overturn a 2020 Missoula County zoning ordinance that required all Bitcoin miners to buy or build renewable energy assets equivalent to their energy consumption. Missoula County is a city located in the state of Montana.
In recent times, Bitcoin miners have been a target of environmentalists and U.S. lawmakers for their potential impacts on carbon neutrality goals as well as electrical grids. On November 22, New York Governor Kathy Hochul officially enacted a two-year ban on proof-of-work cryptocurrency mining, making it the first state in America to do so.
However, in the past few months, miners have been fighting back; as many as five bills are going through state legislatures to protect the industry and several officials have also raised opinions in favor of mining. In January, the office of New Hampshire Governor Chris Sununu published a report on cryptocurrencies and blockchain technology.
Among other things, the governor recommends that the Department of Energy examine Bitcoin mining for its potential benefits. The governor’s recommendations are to examine how mining can result in a stable electricity grid, more sustainable generation projects, and lower consumer costs.