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A new bill in the Texas Senate exclusion Incentives introduced to attract cryptocurrency miners to the Lone Star State.
Miners have surged in Texas since tax breaks were introduced, and growth is expected to continue to soar. According to the Texas Blockchain Council, mining power consumption has increased by 75% in the past 12 months, despite concerns over rising energy prices.
Senate Bill 1751
Senate Bill 1751, sponsored by Texas Senator Royce Korkhorst, passed hearings on March 28. testimony From experts for and against the bill.
The status of the bill is currently ‘Pending in Commission’.
Under the bill, miners will no longer be able to participate in state-run electricity demand response programs. Miners are now rewarded for returning power to the grid when demand is high.
The bill would also eliminate tax incentives and subsidies currently in place for cryptocurrency miners.
Industry proponents objected
But industry proponents argue that removing these incentives would hurt the industry. It created jobs and should not be removed.
Additionally, they touted the benefits of mining and how it has helped the state’s power needs.
They also said that putting limits on miner participation in state-run demand response programs would “lower” costs, as miners are very responsive and price sensitive, so the state’s use of these ancillary services would not be possible. argued that it would lead to higher prices.
Limiting attendance reduces demand, leaving fewer people to provide low-cost services to the state.
Kristine Cranley, director of business development for the Texas Blockchain Council, said the mining industry is building wind and solar infrastructure in Texas and also acts as a buyer of last resort for that kind of energy. I was.
Additionally, Cranley said the industry is “uniquely capable of meeting the needs of the grid” because it can be turned on and off almost instantly. She added that this property helped the state weather the last winter storms.
No more incentives
Korkhorst believes the incentives and subsidies put in place to attract cryptocurrency miners to Texas are no longer necessary as the sector is expected to grow massively.
In her testimony, she said the bill was intended to “right-size” the industry so it would no longer need the support provided through these incentives.
Korkhorst said the bill is not a “punitive” bill.
