Texas Senate Moves to Restrict Crypto Mining Incentives

Legislative Action Unfolds

In a surprising twist to the Lone Star State’s crypto saga, the Texas Senate Committee on Business and Commerce has just voted 10-0 to advance Senate Bill 1751. This bill, introduced by state Senator Lois Kolkhorst, aims to redefine the relationship between Texas and its beloved miners. Hold onto your hats, folks — we’re heading into a mining-free zone!

What’s the Nitty-Gritty?

The bill is set to change the game for crypto miners by altering sections of Texas’ utilities and tax code. Among the proposed restrictions, there’s a notable cap on anticipated electricity demand for participating firms, limiting them to a mere “less than 10 percent of the total load required by all loads in the program.”

Goodbye Tax Breaks

Starting this September, some crypto mining companies can kiss those sweet tax abatements goodbye when it comes to participating in Texas’ energy-saving initiatives. That’s right — less savings, more uncertainty! This legislative move could dissuade miners from setting up shop in Texas’ rural areas, a significant shift for an industry that thrived in those locales.

Deeper Implications

Crypto mining advocate Dennis Porter, CEO of the Satoshi Action Fund, has made his stance clear: he believes these changes are a direct hit to job creation in those rural communities. Porter even expressed concern that lawmakers were swayed by the influence of Kolkhorst, claiming the committee’s decision was far from the best choice for Texas miners.

The Ripple Effect

It’s uncanny how quickly things can pivot in the realm of politics. Just a few years ago, Texas was a haven for miners fleeing restrictions from other countries — particularly China. The state has been positioning itself as a crypto-friendly environment, with Governor Greg Abbott even branding himself a supporter of crypto law proposals. So, will Texas continue to be the wild west of crypto, or is it turning into a gentler pasture?

Next Steps for Senate Bill 1751

With the Senate committee’s approval under its belt, SB 1751 is off to the full Texas Senate for what’s sure to be an interesting floor vote. As the dust settles from this swift action, all eyes will be on the outcomes, and whether the bill will indeed cool off the North Star of crypto mining in Texas.