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Trade advocacy group Texas Blockchain Council has launched a campaign to condemn recent legislation that seeks to eliminate various incentives available to bitcoin miners in the state.
The campaign, called “Don’t Ruin Texas’ Innovation,” aims to block legislation scheduled for a vote by the state Senate.
The campaign is also supported by the Satoshi Action Fund and the Digital Chamber of Commerce. The website encourages state residents to contact their representative senators and ask them to vote against Senate Bill 1751.
It also asks out-of-state supporters to email the Texas Senate “urging them to vote against SB 1751.”
Texas Blockchain Council Chairman Lee Blacher said:
“This bill does not embody the free market principles that have made Texas a global economic powerhouse.”
“Don’t mess with Texas innovation”
This campaign raises four main points against SB 1751.
Bitcoin miners “often offer these services at the lowest prices,” they argue, so the restriction will push consumers to pay more for key grid services. The bill, if passed, will drastically reduce competition for these services.
The bill would also adversely affect the more than 20,000 jobs created by the mining industry in rural Texas and, in a best-case scenario, is expected to slow future growth of those jobs. In the worst case, you may lose your current job.
The bill arbitrarily excludes the entire industry from participating in the demand response program run by the Texas Electricity Reliability Council (ERCOT) based on energy use, the campaign argues. . This goes against free market principles. Furthermore, he said:
“This industry-specific restriction is particularly egregious given the massive investment and job creation that miners have made in rural Texas.”
Further, the campaign argues, the bill limits participation in demand response when Texas needs it most. By reducing energy use during winter storm Elliott, the miner claims he has the unique ability to instantly divert energy, helping heat more than 1.5 million homes.
SB1751
Senate Building 1751 Sponsored by Texas Senator Lois Korkhorst, it seeks to limit Bitcoin miner participation in ERCOT’s demand response program.
The bill also eliminates tax incentives and subsidies that have been introduced in recent years to attract miners to Lone Star State.
Kolkhorst believes incentives are no longer needed and mining is expected to grow anyway. She added that the bill is intended to “right-size” the industry in the state.
The bill was released at a public hearing on March 28, which included testimony from experts in favor of or against the bill, including cryptocurrency advocates such as the Texas Blockchain Council.
SB 1751 is currently awaiting formal ballot by the Texas Senate.
