Texas Blockchain Council launches campaign to block anti-mining bill
The Texas Blockchain Council – a trade advocacy group – launched a campaign to denounce a recent bill that seeks to eliminate various incentives available to Bitcoin miners in the state.
The campaign — dubbed “Don’t Mess With Texas Innovation” — aims to block the bill, which is set to be voted on by the state Senate.
The campaign is also supported by the Satoshi Action Fund and the Chamber of Digital Commerce. The site is urging residents of the state to contact their representative senators and ask them to vote against Senate Bill 1751, as it would have a negative impact on crypto-related innovation.
It also encourages out-of-state supporters to email the Texas Senate and “urge them to vote NO on SB 1751.”
Texas Blockchain Council President Lee Bratcher said:
“This bill does not embody the free market principles that have made Texas a global economic powerhouse.”
‘Don’t Mess With Texas Innovation’
The campaign raises four main points against SB 1751
It claims the restrictions will cause consumers to pay more for key network services as Bitcoin miners “often offer these services at the lowest price.” If the bill passes, it will reduce competition in these services.
The bill would also negatively impact the more than 20,000 jobs created by the mining industry in rural Texas and is expected to cause a stagnation in the future growth of such jobs in a best-case scenario. Although in the worst case it could lead to the elimination of current jobs.
The campaign argues that the bill arbitrarily excludes an entire industry from participating in the demand response program run by the Electric Reliability Council of Texas (ERCOT) based on what the energy is used for – which goes against free market principles. It further states that:
“This industry-specific limitation is particularly severe given the large investments and job creation that miners have made in rural Texas.”
Additionally, the campaign claims the bill limits participation in demand response at a time when Texas needs it most. It claims miners helped heat more than 1.5 million homes during Winter Storm Elliot by reducing their energy use and is uniquely able to divert energy at a moment’s notice.
SB 1751
Senate Bill 1751 is sponsored by Texas State Senator Lois Kolkhorst and seeks to limit Bitcoin miners’ participation in ERCOT’s demand response program, which compensates firms for adjusting the load on the state’s grid during times of crisis.
In addition, the bill would also eliminate tax incentives and subsidies that have been in place to attract miners to the Lone Star State in recent years.
Kolkhorst believes the incentives are no longer necessary and growth in the mining industry is expected regardless. She added that the bill is intended to “right size” the industry in the state.
The bill went through a public hearing on March 28 that included testimony from experts for and against the bill, which included crypto advocates such as the Texas Blockchain Council.
SB 1751 now awaits an official vote in the Texas Senate.
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