The Texas Senate recently passed a landmark bill that limits the participation of Bitcoin miners in certain demand response programs. If this bill is approved by the House and signed into law by Governor Greg Abbott, Bitcoin miners would be limited to 10% of the participation and the industry would no longer be eligible for tax abatements. This bill is an attempt to create a more equitable balance between large, corporate interests and the wider public.

The bill was passed with only one vote against, however, the vote in the House could be far more divided. Pro-Bitcoin advocates have launched a campaign against the bill, claiming that it is “anticompetitive” - implying that it undermines the industry as a whole by limiting miners from partaking in certain demand responses programs. Companies such as Marathon Digital Holdings (MARA), which has some bases in Texas, have weighed in on the bill, stating that most opinions in the House align positively with the benefits of Bitcoin mining.

Those in favor of the bill argue that miners offer an important asset to the Texas grid - the ability to fund energy generation capacity when there is little demand. Therefore, many view this bill as an attempt to ensure more equitable benefits bringing together the large corporate interests and the broader public. On the other hand, critics such as Texas resident Jackie Sawicky believes that miners are being subsidized for their operations through these demand response programs.

Given the inversion of opinion in the Senate, it will be interesting to see the outcome of the House vote and the decision of Governor Abbott. Regardless, it’s clear that Cryptocurrency is making a big impression on the Texas State Legislature.



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