Texas Senate Bill Aims to Remove Incentives for Bitcoin Miners

  • Ultramining.com
  • 30 March, 2023 21:09
Texas Senate Bill Aims to Remove Incentives for Bitcoin Miners

A new bill in Texas seeks to eliminate tax incentives and subsidies for cryptocurrency miners. Senate Bill 1751, sponsored by Texas State Senator Lois Kolkhorst, would also prohibit miners from participating in the state’s demand response program for electric power. Proponents of the bill argue that the incentives are no longer necessary as the industry is expected to grow significantly, while opponents claim that removing them would have an adverse effect on the mining industry and result in a rise in the price of ancillary services. The bill is currently pending in committee.

Texas has seen a surge in cryptocurrency miners due to the tax abatements, with power consumption up 75% over the last 12 months. However, concerns over high energy prices and the impact on the power grid have raised questions about the sustainability of the industry in the state. The Texas Blockchain Council has testified that the mining industry has resulted in thousands of jobs and is uniquely capable of addressing the needs of the grid. They also claim that the industry has helped Texas build out wind and solar infrastructure and serve as buyers for that kind of energy.

Despite opposition from industry proponents, Senator Kolkhorst believes that the incentives and subsidies are no longer necessary, and the bill aims to “right-size” the industry. However, she stated that the bill is not punitive, and large-scale growth in the sector is still expected. The outcome of the bill will have significant implications for the cryptocurrency mining industry in Texas.

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