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FameEX Hot Topics | Critics Slam Texas Bill Eliminating Crypto Mining Incentives, Citing Stifled Innovation

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, which proposes to remove several incentives for crypto miners operating in the state. The groups are urging Texas residents to contact lawmakers in opposition to the bill, claiming that it adds restrictions for crypto mining facilities and is antithetical to free market principles. They are also concerned that the bill would push innovation out of the market and harm Texas’ economy and job market, especially as the state seeks to recover from the February 2021 winter storm.

Currently, some crypto mining firms participate in a program organized by the Electric Reliability Council of Texas, which compensates them for adjusting their load on the state's power grid during periods of high demand. The proposed legislation would amend sections of Texas’ utilities and tax code to add restrictions for crypto mining facilities.

Perianne Boring, founder and CEO of the Chamber of Digital Commerce, said, “We need to send a strong message to policymakers that the people do not want protectionist policies that push innovation out of the market...this bill is the wrong proposal at the wrong time.”
The campaign, named “Don’t Mess With Texas Innovation,” is a nod to the state’s anti-littering slogan, which has been used by many lawmakers to describe government overreach. The groups claim that the bill would restrict innovation and harm Texas’ status as a leader in the crypto industry.
The Texas power grid has come under increased scrutiny from federal and state lawmakers and regulators since the February 2021 winter storm left millions of residents without power and running water for days. The storm also contributed to damage to certain crypto mining facilities due to burst water pipes.

The campaign against the bill highlights the growing tension between the crypto industry and regulators, as governments seek to balance the potential benefits of crypto with concerns around energy consumption, environmental impact, and financial stability. As crypto continues to gain mainstream attention and adoption, it is likely that we will see more regulatory proposals and pushback from industry advocates in the coming months and years.

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