Bill To Cap BTC Miners In Demand Response Programs Approved

The Texas Senate has passed a new bill aimed at limiting the participation of bitcoin (BTC) miners in demand response programs, which pay them to curtail their operations during periods of high energy demand. Bill SB 1751 was passed with just one vote against and will now be sent to the House for further approval. If the bill is passed, it will have to be signed into law by Texas Governor Greg Abbott.

Controversial Bill

The proposed legislation aims to limit the participation of bitcoin miners in demand response programs to 10% and abolish tax abatements for the industry. The bill is expected to face more opposition in the House, as bitcoin miners have ramped up their advocacy against it. Three lobbying groups, including the Texas Blockchain Council, the Chamber of Digital Commerce, and the Satoshi Action Fund, have launched a campaign against the bill, arguing that it is “anticompetitive.”

The House vote is expected to be contentious because many people in the House believe that the benefits of bitcoin mining outweigh the negatives. Fred Thiel, CEO of bitcoin mining firm Marathon Digital Holdings (MARA), which has some of its operations in Texas, said that “the opinions in the House are much more aligned with the positive aspects and the benefits of bitcoin mining.”

Those in favor of bitcoin mining argue that miners’ flexibility in powering on and off is an asset to the Texas grid. They claim that miners can fund energy generation capacity during times of low demand and turn off when power is needed for the rest of the grid.

 

The Future of Bitcoin Mining

However, critics of the industry, such as Texas resident Jackie Sawicky, have organized hundreds of local residents into a group called Concerned Citizens of Navarro County to campaign against Riot Platforms (RIOT), one of the largest miners in the state. They argue that the demand response program is essentially subsidizing miners for their operations.

The debate surrounding the bill highlights the complex nature of bitcoin mining and its relationship with energy usage. The outcome of the House vote will have significant implications for the future of bitcoin mining in Texas and potentially across the United States.