Mississippi State Senate Passes Bill to Protect Crypto Miners

The Mississippi Digital Asset Mining Act was approved by the state Senate on February 8, 2019, bringing the US state of Mississippi one step closer to safeguarding the rights of cryptocurrency miners. It is a parallel measure that is now being considered in the House of Representatives for the state.

Home mining of digital assets and the operation of mining companies in areas designated for industrial use have both been made legal by a measure proposed in the state Senate and sponsored by state Senator Josh Harkins. The state of Mississippi, which has among the cheapest residential power rates in the US, is already home to cryptocurrency miners. The measure, however, said that “Digital asset mining has often faced regulatory hurdles at the state and municipal levels.”

In addition, the bill prohibits imposing requirements on miners that are greater than those locally applicable to data centers; change the zoning of a mining center without proper notice and opportunity to appeal; limit noise from domestic mining beyond existing limits; and limit noise from domestic mining beyond existing limits. It makes it illegal for the Public Service Commission to impose discriminatory fees on mining companies and exempts home and business miners from the requirements that apply to money transmitters.

In addition, the measure offers a legal definition of the term “virtual money” for use in the state.

The Satoshi Action Fund has been active in Mississippi, among other states across the country. During his presentation to the Mississippi Senate Finance Committee in January, the CEO of the fund, Dennis Porter, raised the possibility that cryptocurrency miners could exploit abandoned oil and gas wells as a source of electricity.

Orphaned wells are mentioned in both the Senate bill and the House version. In accordance with the provisions of the house bill, a state mining council for digital assets will be established. During the year, members would discuss issues such as the viability of using the wells as a power source for mining. The methods committee voted for adoption of the house bill, but the measure has not yet been considered on the floor of the house.

The measure proposed in Mississippi stands in stark contrast to the two-year ban on cryptocurrency mining approved in New York in November and later signed into law.