Senator Ted Cruz introduced the FLARE Act to repurpose flared gas for Bitcoin mining using tax incentives.
The bill aims to cut emissions and promote energy innovation without adding new subsidies.
Crypto industry leaders praised the move as a major step toward sustainable mining and grid stability.
In a move that blends energy policy with digital innovation, Senator Ted Cruz rolled out new legislation on April 1 aimed at turning flared gas—the stuff that usually gets burned off during oil drilling—into something a bit more useful: electricity for mining Bitcoin and other digital assets.
The bill is called the FLARE Act (short for Facilitating Lower Atmospheric Released Emissions) and it’s kind of a two-for-one. It targets both emissions reduction and energy innovation, while tossing in some tax incentives to get private companies on board.
JUST IN: 🇺🇸 Senator Ted Cruz has introduced the FLARE Act to repurpose flared natural gas for Bitcoin $BTC mining pic.twitter.com/F0bqii2PIL
“We’re tackling energy waste and promoting innovation,” Cruz said. “No new subsidies—just smarter tax treatment.”
Mining Bitcoin… But Greener?
At the heart of the bill is the idea that digital asset mining should be treated as a value-added activity, which could shift how the federal government handles things like infrastructure and capital investment.
Basically, companies would be allowed to fully expense qualified property up front—instead of spreading deductions over several years. That’s a pretty big incentive when you’re building out rigs or setting up energy capture infrastructure.
There’s no new funding or handouts here. The FLARE Act just tweaks existing tax code to encourage repurposing flare gas into electricity, which would otherwise just be wasted. Think of it as giving oilfield exhaust a second life… to mine crypto.
Industry Response? Big Thumbs Up
The crypto world didn’t wait long to respond—and they’re into it.
Matthew Sigel of VanEck called the bill “great news,” adding it could help miners reduce emissions and tap into stranded energy in a smarter, more sustainable way.
“This bill validates what we’ve been doing—repurposing flared gas to power mining operations,” the company said. “It’s good for the grid and for emissions.”
And then there’s the Digital Power Network—a coalition of mining and energy firms—that issued a full endorsement. Their director of government affairs, Hailey Miller, called the FLARE Act “a monumental step” for both the U.S. energy sector and the crypto industry.
“By incentivizing capture of wasted gas,” she said, “this bill supports grid stability, clean energy innovation, and sustainable Bitcoin mining here in America.”
What Could It Mean Long-Term?
Supporters say the bill could lead to a bunch of downstream benefits:
Fewer emissions from oilfields
More flexible energy loads for rural areas
New jobs and investment in places that need it
Clearer recognition of crypto mining as a legitimate industrial activity
The Senate Finance Committee is now reviewing the bill, and its future depends on how it moves through Congress. But in the meantime, it adds momentum to a broader trend: positioning crypto mining not just as a power-hungry outlier, but as a potential solution to long-standing energy challenges.
And yeah, that’s a pretty big shift from how it used to be viewed.
