In a recent revelation, Cody Harris, a Texas House of Representatives member, proposed a Bitcoin mining bill. The proposed bill recognizes the right to mine Bitcoin in the state, however, it has also added fuel to the inherently controversial topic of cryptocurrency mining in Texas.
Harris asked his fellow lawmakers to rise in support of miners and “express support for protecting individuals who code or develop on the Bitcoin network.”
Texas has been a popular state for crypto mining. It started emerging as a mining hub and attracted the attention of the United States from China after the latter banned mining. The proposed bill also refers to this event while talking about the importance of favoring Bitcoin mining.
In reference to the right to own and use Bitcoin, the bill guarantees the owners and miners legal protection and validation. As stated in the bill:
Individuals who mine Bitcoin in Texas will never be inhibited by any law or resolution that restricts the practice of securing the Bitcoin network for the safety of the virtual currency. All those in the broader community who choose to own Bitcoin as a manner of storing their wealth and transacting peer-to-peer with other law-abiding Texas citizens shall always feel free and safe in their ownership and use of Bitcoin.
However, it is important to note that the proposed bill is trying to establish a sentiment about the largest crypto and mining and not make great changes to rules and regulations. As required, it will first have to pass the House, then the Senate, and lastly, the Governor’s office to become a law.
Texas has largely been in favor of cryptocurrencies as well as mining activities. It has one of the largest presences in the Bitcoin mining industry, with the state accounting for 11.2% of Bitcoin’s total hash rate whereas the nation as a whole account for about 37% of the global hash rate.
However, lawmakers in the US have not appeared very supportive of the idea of Texas being a mining hub. They have also highlighted that the growth of crypto mining in the state has even led to increased power bills.
Notably, when the weather conditions worsened in December, it led to power outages resulting in a subsequent drop in hash rate by about 35%. At this time, miners in the state were forced to turn off their mining devices. Following the winter storm, Bitcoin miners helped restore up to 1,500 megawatts of power to the struggling local infrastructure. It was made possible by the state authorities’ supplementary services and the adaptability of mining operations.
While state authorities have largely been supportive, Bitcoin mining in Texas has been controversial, mostly due to the failing power grid. In October, Senator Elizabeth Warren and a group of six other senators asked for data on the energy use and potential environmental effects of Texas-based bitcoin mining facilities.
The senators expressed their concerns about the possibility that mining operations could put additional strain on the state’s power grid, referring to Texas as a “deregulated safe harbor” for cryptocurrency mining companies. Notably, states in the US have very different approaches to crypto mining. While New York banned mining activities for two years, several states in the US have shown intentions of protecting miners via “Right to Mine” bills.
In the last week of February, the Montana Senate passed a historic bill to help struggling crypto miners from discrimination against mining operations. Prior to this, the Mississippi Senate passed the “Right to Mine” bill which is to protect Bitcoin miners from discrimination and recognizes the potential of the activity to drive economic growth and stabilize the energy grid.