2 US states introduced law to protect Bitcoin mining
Credits: Arab News

2 US states introduced law to protect Bitcoin mining

Political subdivisions of the state are creating requirements that are inconsistent with other data center requirements and are changing the zoning of bitcoin miners without proper notice. Sound ordinances directed at mining facilities that are not consistent with other sound ordinances within the community. Running nodes or miners is considered an act of transferring money.

Yesterday, a commission in New Hampshire recommended that the US state Department of Energy investigate how Bitcoin mining could be integrated into energy grids across the state. In addition to this recommendation, a report published in November 2022 aimed at members of the Texas legislature recommended making Bitcoin a sanctioned investment for the state while providing tax incentives to local BTC miners.

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Credits: Bitcoin.com

“I see an opportunity for states that have been left out of the tech boom to have a real opportunity to participate in the bitcoin boom,” commented Dennis Porter, CEO and founder of the Satoshi Action Fund. “Mining facilities are often built in rural parts of America. We hope that Missouri and Mississippi realize this potential and start opening up their states to bitcoin mining companies.”

The reports all indicate a growing interest from states across America in how they can benefit from the adoption of Bitcoin and the use of Bitcoin mining on their energy grids. Ongoing political action from organizations like the Bitcoin Policy Institute and the Satoshi Action Fund are major contributors to the formation of lawmakers.

Harkins has filed two bills that would help create a program in the state. Senate Bill 2603 would create a state body to regulate the industry and put limitations on restrictions that could be potentially applied by local governments. SB2435 would set up a partnership program to allow data miners to use the methane from the wells to fuel onsite generators, which then provide power to the computer servers used for digital mining. The miners would have temporary access to the methane, provided they take responsibility for capping and remediating the well.

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Credits: Bankrate

The Bitcoin miners would have to place a bond with the state Oil and Gas Board and show proof they’re legitimate miners before they could use an orphaned well as a power source. They would be restricted to areas zoned for industrial use. The data centers that do the mining work are modular and can be combined together for a larger facility or run as a smaller independent one. Porter told the committee that Bitcoin mining is “location agnostic” and can set up shop anywhere.

“We think it’s a win for the environment, a win for taxpayers and a win for the economy,” Porter told the committee. He also told the committee that plugging one of these orphaned wells could cost the state between $50,000 and $100,000, a figure that would be paid by the Bitcoin miners. The federal government has provided the Magnolia State with $25 million to help remediate these abandoned wells, a figure that could swell to $31 million.