Texas Bitcoin Mining Faces Restrictions: Senate Committee Passes Bill With Zero Opposition
• Texas Senate Committee passes a restrictive Bitcoin mining bill with no opposition.
• The Bill will restrict miners‘ power demands from the Texas grid operator Electric Reliability Council of Texas (ERCOT).
• Famous Bitcoin advocates work collaboratively to uphold Texas as the dominant Bitcoin mining capital in the world.
Bitcoin Mining Restrictions in Texas
The Texas Senate Committee has passed a restrictive Bitcoin mining bill with no opposition. This anti-Bitcoin mining bill, if passed, will impose two notable restrictions on Bitcoin miners; eliminating tax reductions on certain properties and limiting miner’s participation in the „demand response program“ to less than 10% of the total load. It also demands that any mining operator that consumes electricity exceeding 10 megawatts (MW) must register as a „large flexible load.“
Power Consumption Concerns
Texas is known to be one of the prime crypto mining hubs and miners have been consuming 2100 megawatts (MW) of electricity from ERCOT grid which has raised concerns among lawmakers. This is why they are keen to reduce energy intake from this sector.
Prominent Advocates Oppose Bill
Two prominent bitcoin advocates, Pierre Rochard, VP of Research at Riot Platforms and Dennis Porter, CEO of Satoshi Action Fund showed up in State Capitol to voice their opposition against the bill. They are working together to maintain Texas as a leading bitcoin mining hub.
Demand Response Program Limitation
Miners will not be able to participate more than 10% in “demand response program” due to this bill if it were passed. Demand response programs helps customers lower their energy costs by reducing or shifting their electric usage during peak times when electricity prices tend to be high or when there is an emergency situation such as Transmission & Distribution System overloads or extreme weather events.
Future of Bitcoin Mining In Texas
The future for bitcoin miners in Texas remains uncertain until this law is passed or amended by House Representatives. If it does get approved then it could potentially have far reaching implications on power consumption from cryptocurrency operations across the state as well as other states that may follow suit with similar legislation.