Mississippi & Missouri lawmakers propose laws protecting bitcoin mining

[Husires]

Legislators from two U.S. states, Mississippi and Missouri, have moved to take advantage of the emergence of blockchain technology by proposing new legislation to legally protect their residents’ right to mine bitcoin (BTC) and engage in node-running operations.

Per reports, the bills are being reviewed by the Houses and Senates of the two states, with lawmakers expected to vote on the proposed legislation soon. Sen. Josh Harkins, Rep. Jody Steverson for Mississippi, and Rep. Phil Christofanelli for the Missouri House are the sponsors of the legislation.

The structure of both bills was inspired by the non-profit bitcoin mining advocacy organization, Satoshi Action Fund, and they specifically state that it is completely legal to own and operate mining nodes both in private residences and at an industrial scale.

In addition, the proposed legislation will protect miners in the states from “discriminatory energy rates,” political subdivisions trying to set a different set of rules concerning zoning which do not apply to other data centers in the state, and so on.

Source https://crypto.news/us-lawmakers-propose-laws-protecting-bitcoin-mining/

The United States is moving to protect companies and investors, and it seems that the efforts are not limited to those two states only, but in the state of Pennsylvania, outgoing Senator Pat Tommy introduced a bill that focuses on cryptocurrency legislation, which will give more singable solutions in the future, which means that we are in the development of understanding this technology And trying to fold it into the financial and economic systems.

I don't know if there are similar laws in different states, but let's see how the laws will change the direction of Bitcoin mining investments and cash flows.

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[DaveF]

Lets call it what it really is, we want to put in the structure to allow people to do stuff so we can tax it.
They put in all the nice wording but in the end of the day neither state has a lot of mining going on, and unless some things change probably never will.

Nothing against them, but they don't have the existing infrastructure for large miners to come in at the moment and there does not appear to be any large projects on the horizon.

-Dave

[YOSHIE]

In my opinion, the law on protection for investors, especially crypto or Bitcoin miners, which was planned or proposed by the Mississippi & Missouri parliament, has already been implemented by other countries such as Kazakhstan.
Example:

the Kazakhstan government announced generous tax incentives for miners: cryptocurrency mining was to be entirely taxfree, with taxes applied only when cryptocurrencies were converted to fiat currency.9

it was estimated that US$ 190 million had already been invested in cryptocurrency mining operations in the country11 and Kazakhstan had in place preliminary agreements with investors worth US$ 738 million. 12 There are currently around 200 legally registered cryptocurrency miners in Kazakhstan, including miners from China, the US and Switzerland.

Cryptocurrency mining in Kazakhstan: Protections for Foreign Investors

However, as far as I know, apart from Kazakhstan, another country that has implemented bill licenses for Bitcoin miners is Paraguay, it seems that the proposal for a protection law for miners proposed by the Mississippi & Missouri parliament is late.

[Poker Player]

Does anyone know how is the competition between Washington and the states in the USA? I mean, could a federal law prohibiting mining, for example, be passed and this law would rule over what the states want to legislate? I don't think they are going to do it but just to know how is the issue of competences.

Lets call it what it really is, we want to put in the structure to allow people to do stuff so we can tax it.

How shocking, lol. Surprised?

[Husires]

Bitcoin Mississippi bill that just passed:  http://billstatus.ls.state.ms.us/2023/pdf/history/SB/SB2603.xml

the bill prohibits limiting noise from home mining beyond existing limits, imposing requirements on miners beyond those locally applied to data centers, or changing the zoning of a mining center without proper notification and an opportunity to appeal.

It also prohibits the Public Service Commission, which regulates utilities, from imposing discriminatory rates on mining businesses and exempts home and business miners from money transmitter status.

An accompanying bill is under consideration in the state House of Representatives.
I do not know why the drafting of the law in terms of mining digital assets and not bitcoin mining or cryptocurrencies mining.

[Husires]

The Arkansas State House has passed a bill (https://www.arkleg.state.ar.us/Bills/Detail?id=HB1799&chamber=Senate&ddBienniumSession=2023%2F2023R) aimed at regulating the Bitcoin mining industry in the state.

The bill proposes that a Bitcoin mining business may operate in the state if it complies with state laws concerning business guidelines and tax policies, any ordinances concerning operations and safety, any rules or rates for utility service provided by or on behalf of a public entity, and state and federal employment laws. The bill also proposes that miners will be required to pay applicable taxes and government fees in acceptable forms of currency and operate in a manner that causes no stress on an electric public utility’s generation capabilities or transmission network. The bill further allows individuals to operate home Bitcoin mining according to applicable utility rules and rates.

Source https://bitcoinmagazine.com/legal/arkansas-house-and-senate-pass-bill-protecting-right-to-mine-bitcoin


This is roughly the fourth state that may allow bitcoin mining, so we'll probably see more bills soon.

[Husires]

Montana Senate Passes Bill Protecting Crypto Miners

The Montana State Senate passed a bill on Thursday protecting crypto miners from a range of possible actions against the industry.

http://laws.leg.mt.gov/legprd/LAW0210W$BSIV.ActionQuery?P_BILL_NO1=0178&P_BLTP_BILL_TYP_CD=SB&Z_ACTION=Find&P_SESS=20231

The legislation also takes power from local governments, preventing them from moving against at-home mining or retroactively using zoning laws to shut down active operations. "These protections, along with clarifying tax law in relation to digital assets when used as payment, will plant a flag in Montana that sends a message that we are open to embracing the digital asset mining industry," Montana Senator Daniel Zolnikov (R) told CoinDesk.

The new law might possibly upend a 2020 Missoula County zoning ordinance that required all bitcoin miners to buy or build renewable energy assets equivalent to their energy consumption.

"Missoula County has no position on this bill, and we're not concerned it will affect our regulations," said a representative for the county.

https://www.coindesk.com/policy/2023/02/23/montana-senate-passes-bill-protecting-crypto-miners/

almost. We now have four states that have approved bitcoin mining, and one state has banned it.

[pawel7777]

Thanks for sharing.
So, if I'm reading them right, those bills essentially only prevent discrimination of digital mining and want it to be treated at par with other, similar types of businesses, but they don't propose any preferential treatment for miners, just give them a bit of regulatory stability.

[joniboini]

So, if I'm reading them right, those bills essentially only prevent discrimination of digital mining

CMMIW, what they mean by discriminatory is related to electricity rate only right? Or are there other forms of crackdowns that have no legal basis on miners in the US? So basically miners can now enjoy the same power source as others as long as they pay them and make sure to cause 'no stress on public utility generation'. I wonder how it will affect the surrounding household though, hopefully not too catastrophic. It would bring negative PR if miners cause some power station to fail for one weird reason or another.

[yhiaali3]

. I wonder how it will affect the surrounding household though, hopefully not too catastrophic. It would bring negative PR if miners cause some power station to fail for one weird reason or another.

I don't expect mining to have much impact on the electric power in the surrounding areas because Missoula County is not among the major big bitcoin mining areas as far as I know, plus it has several sources of electrical energy such as solar and water through waterfalls and rivers and wind energy in addition to energy Also nuclear.

For these reasons they are probably not worried:

"Missoula County has no position on this bill, and we're not concerned it will affect our regulations," said a representative for the county.

[aoluain]

Overall I think its good news and ignores the likes of Greenpeace's concerns over
Bitcoin mining and its supposedly _non Green credentials.

In Europe here I recon Bitcoin mining is treated and taxed like most other business or
manufacturing company or at the very least I havent heard of any European country
banning Bitcoin mining. Possibly in some countries there arent any regulations in
place at all.

At least these 4 brave states are making it possible to mine now or in the future.

[joniboini]

I don't expect mining to have much impact on the electric power in the surrounding areas because Missoula County is not among the major big bitcoin mining areas as far as I know, plus it has several sources of electrical energy such as solar and water through waterfalls and rivers and wind energy in addition to energy Also nuclear.

That's good news to hear. I do believe renewable energy is the way to go for the future, including mining. If miners can even use those energy sources it would be even better, CMIIW. Unfortunately, the equipment and cost to maintain renewable energy source is still not as cheap as using coal or a similar source as of now, at least in my area.

[DaveF]

The problem is, and continues to be that at least for now the states who are making these laws have average power rates AND not of other high tech businesses that may attract mining. Even now the Pacific NW with it's cheap hydro, if the local power company hit miners with a 30% surcharge would still be cheaper then most of the industrial power rates in Missouri.

Add to that, as Texas has proved, you can make it hostile to miners in a second if you want to:
https://beincrypto.com/texas-lawmakers-pass-bill-limiting-bitcoin-mining/
So if you move your mining operation to a state for reason A that's great, just make sure to check B though Z to be sure you are not going to get screwed someplace else.

-Dave