- Montana has proposed a pro-crypto mining bill, in order to attract innovation and jobs for the people of rural Montana
- Montana could face a series of changes if its pro-crypto mining bill is approved.
- Its approval is expected to bring some positive transformations to Montana
The Montana Senate recently passed a bill to protect crypto miners operating within the state. The proposed law, which is currently making its way through the state’s House of Representatives, seeks to protect both individual and commercial miners in Montana against discriminatory laws by scrapping some of the rules that have the potential to undermine their operations.
Specifically, the bill seeks to protect miners against taxes on digital assets used as a means of payment. Additionally, it endeavors to permit home crypto miners who use less than 1 megawatt of energy annually to do so, except in contravention of existing noise bylaws.
Furthermore, it seeks to eliminate any energy rate classification discriminating against home crypto mining and digital asset businesses.
The bill comes after years of concerted efforts by lobbyists and crypto companies to put more crypto-favorable laws on the books in the state.
Satoshi Action Fund CEO Dennis Porter discussed the latest development earlier this week. His non-profit organization helps shape related policies by providing lawmakers and regulators with data that underscores the benefits of Bitcoin mining.
“Montana has very high wind energy potential. It is ranked fifth, according to NREL. Small wind projects struggle in states like Montana though due to the need for very long transmission lines which can get the power to market,” Porter said. “Mining helps solve this issue because it can be an early buyer of that power. Montana has a hard time exporting its power due to being remote. Now the state can bring customers [Bitcoin miners] to them instead.”
Porter said there are two “major factors” holding back the crypto-mining industry in the United States: “The first is the misconception that mining is bad for the grid or the environment. Mining is, in fact, a powerful tool for balancing the grid and cleaning up the environment.”
According to the exec, the second factor hindering mining in the United States is regulatory policies that apply to mining that fail to consider some of its positive aspects. He highlighted the concept of grid balancing as an example.
“Mining thrives in states which have grid balancing programs,” he explained. “These programs pay participants to turn down their power consumption when power prices spike, or there is a lack of supply. Miners are well suited for participating in these types of programs because mining can reduce its power consumption at the click of a button during any hour of the day.”
How Montana Stands to Benefit
The bill’s proponents believe that, with updated legislation, Montana will be able to attract mining companies to the state, which will boost the region’s economy directly and indirectly.
Montana State Senator Daniel Zolnikov, the bill’s chief advocate, said that the region had a lot to gain by embracing the digital asset industry. He explained that by permitting crypto mining operations to function without restrictions, Montana would potentially attract more businesses and investments from the more comprehensive cryptocurrency sector:
If my legislation passes into law, Montana will attract more digital asset miners who will invest in many of the rural communities in Montana, creating jobs where they are most needed.
“I hope this will also signal to the larger digital asset industry that Montana welcomes their innovation as well as new innovative companies into our state,” he added.
Montana’s pro-crypto mining bill is set to encourage more cryptocurrency mining businesses to set up their facilities in the state. While its approval is expected to bring some positive transformations to Montana, some initial teething problems are expected, especially related to eco-friendly and sustainable energy.
The state has a wide range of renewable and non-renewable energy sources that can be harnessed for more energy. However, it will be interesting to see how the state attunes to emerging changes if the pro-cryptocurrency mining legislation is passed.
