Montana Governor Signs Pro-Crypto Mining Bill

Governor Greg Gianforte of Montana has signed a pro-cryptocurrency mining bill, S.B. 178, into law, effectively preventing local governments from passing laws that prohibit cryptocurrency mining in the state. The legislation includes revisions to existing laws, ensuring protection against discriminatory electrical rates for mining firms and prohibiting taxation for crypto used as a method of payment.

The bill was introduced partly as a preventive measure in response to certain proposals in other states, such as Texas, where the state Senate introduced a bill aimed at limiting incentives for crypto miners through participation in a program intended to compensate them for load reductions on the state’s power grid. Montana’s decision to legalize crypto mining is expected to bring economic benefits and promote innovation in the industry, creating a favorable environment for mining operations.

Similar pro-mining legislation has been passed in Arkansas, with the state House and Senate approving a bill comparable to Montana’s S.B. 178. Although the Arkansas legislature’s website did not show any action by Governor Sarah Huckabee Sanders at the time of publication, the CEO of crypto advocacy group Satoshi Action Fund, Dennis Porter, reported that she had already signed the bill into law.

Despite the progress at the state level, the Biden administration recently renewed a push for a 30% tax on cryptocurrency miners as part of an FY2024 budget proposal, targeting miners’ electricity usage.