Mississippi Senate Takes Action on Cryptocurrency Mining

The Mississippi Senate has taken a significant step in the realm of cryptocurrency by passing the Mississippi Digital Asset Mining Act on February 8. This pivotal legislation aims to protect the rights of cryptocurrency miners and to legitimize home mining and mining operations in industrially zoned areas.

Low Electricity Rates: A Boon for Miners

With some of the lowest electricity rates in the nation, Mississippi is already home to several cryptocurrency miners. According to the new bill, Sen. Josh Harkins highlights how digital asset mining has faced undue regulatory scrutiny at multiple levels.

Key Provisions of the Bill

The Mississippi Digital Asset Mining Act lays out crucial guidelines designed to foster a thriving mining industry:

• Legalizes home digital asset mining.
• Allows operation of mining businesses in industrial zones.
• Prohibits local authorities from imposing stricter noise limits than those already applicable to data centers.
• Restricts changes to mining center zoning without prior notice and opportunity for appeal.
• Bars the Public Service Commission from imposing discriminatory rates on mining organizations.
• Exempts home and business miners from being classified as money transmitters.

Defining the Future of Virtual Currency

The bill also seeks to provide Mississippi with an official legal definition of “virtual currency,” a move that will likely clarify future regulations concerning cryptocurrencies.

The Role of Orphaned Wells

Interestingly, both the Senate and House bills mention orphaned oil and gas wells as potential power sources for mining operations. This creative approach comes after remarks by Dennis Porter, CEO of the Satoshi Action Fund, who spoke to the Senate Finance Committee, showcasing how these wells could be repurposed in the crypto mining industry.

Future of the House Bill

The House version of the bill proposes the establishment of a Digital Asset Mining Council tasked with reviewing the use of orphan wells and addressing various other mining-related concerns. While it has been approved by the Ways and Means Committee, the House bill still awaits debate on the floor.

Contrasting Policies: Mississippi vs. New York

This progressive stance in Mississippi stands in stark contrast to the recent two-year moratorium on crypto mining enacted by New York, underscoring a rapidly changing landscape for cryptocurrency legislation in the United States.