Texas Senate passes bill limiting incentives for cryptocurrency processors

On April 13, when the Texas House of Representatives is next planned to convene, it will take up Senate Bill 1751 for further consideration.

The Texas State Senate has passed legislation that will significantly weaken the regulatory climate for cryptocurrency miners.

On April 12, the Texas State Senate voted 30-1 to approve Senate Bill 1751, which would change the state’s utilities and tax laws to impose new regulations on cryptocurrency mining operations. After more than a week of stalling in state government, the measure finally made progress on April 4 when it was approved by the Texas Senate Committee on Business and Commerce.

The Texas House of Representatives is set to convene on April 13 to consider legislation, but it is unclear whether SB 1751 will be on the agenda. As a “crypto law proposal supporter,” Texas Governor Greg Abbott stands ready to sign the measure into law should it pass the House.

Groups like the Chamber of Digital Commerce and the Satoshi Action Fund, which promote the use of cryptocurrencies, have brought SB 1751 to the attention of lawmakers throughout the country. The groups are encouraging Texas to contact their state officials to express their opposition to the measure, and they also intend to hold a demonstration at the Texas State Capitol on April 25 to bring together crypto-mining advocates.

The proposed law would set a 10% maximum on incentives for crypto mining corporations engaging in a program that pays them for load reductions on the Texas electricity system. Starting in September 2023, some enterprises that operate data centers would no longer be eligible for tax relief from the state.

Earlier today, Fred Thiel, CEO of mining business Marathon Digital Holdings, told Cointelegraph, “Elected officials only know how to use hammers — they don’t know how to be surgeons.” This was in reference to the upcoming Senate vote.

Read Also: Spain's Crypto Tax Warnings Reflect a Broader US and UK Effort

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

- Advertisement -

Comments are closed.