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FameEX Hot Topics | Texas Innovation Advocates Speak Out Against Bill Scrapping Crypto Mining Incentives and Limiting Progress

2023-04-11 11:13:20

Three crypto advocacy groups, the Texas Blockchain Council, Chamber of Digital Commerce, and Satoshi Action Fund, have launched a campaign against Texas Senate Bill 1751. The bill proposes to remove incentives for crypto miners operating in the state and add restrictions to crypto mining facilities. The groups have urged Texas residents to reach out to lawmakers in opposition to the bill, citing their concerns about its potential to push innovation out of the market and harm the state's economy and job market, particularly in the aftermath of the February 2021 winter storm. Some crypto mining firms currently participate in a program that compensates them for adjusting their load on the state's power grid during peak demand periods, but this program would be affected by the proposed legislation.

Perianne Boring, founder and CEO of the Chamber of Digital Commerce, stressed that the bill was "the wrong proposal at the wrong time," and that it went against free-market principles. The campaign, called "Don't Mess With Texas Innovation," refers to the state's anti-littering slogan and underscores the groups' belief that the bill would limit innovation and harm Texas' status as a crypto industry leader.

The Texas power grid has been under scrutiny from regulators and lawmakers since the winter storm in February 2021 that left millions of residents without power and running water for several days. The storm also caused damage to certain crypto mining facilities due to burst water pipes. As governments continue to seek a balance between the potential benefits of crypto and concerns around energy consumption, environmental impact, and financial stability, tensions between the industry and regulators are likely to increase. The pushback from industry advocates against regulatory proposals is also likely to continue in the coming months and years as crypto gains mainstream attention and adoption.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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