- Missouri passes Digital Asset Mining Protection Act to protect home and corporate crypto mining operations.
- The bill prohibits the state from prohibiting running nodes for mining and limits prohibitive actions against corporate mining businesses.
- New York recently passed a law banning proof-of-work mining, causing economic impacts and job losses.
On Tuesday, 7 March, the Missouri legislators passed the “Digital Asset Mining Protection Act,” aimed at the protection and rights of cryptocurrency miners. The changes, introduced in January, define the language surrounding cryptocurrency miners and offer protection to both mining businesses and home miners.
The new law sets and defines the legal framework for handling digital assets within the state, focusing on cryptocurrency mining. The bill distinguishes between mining businesses and home miners while offering protection to both.
According to the bill, Mining businesses operate several computers in a single site and consume more than a megawatt of electricity. The bill states that no local or higher-level political structure can force them to cease operations as long as they occur in any area zoned for industrial use.
On the other hand, home digital asset mining is defined as taking place in a residential zone. Both categories of miners are protected from discriminatory energy and noise pollution rates. The bill also states that any jurisdiction seeking to alter zoning has to provide proper notice and go through an appeal process.
The bill also explicitly states that those engaged in home digital asset mining are not to be considered money transmitters.
The bill was approved unanimously by a vote of 12 to zero, securing the support of Democrats and Republicans. However, because this is an amended version of the bill, it must be approved by the Missouri House committee before being sent to the Senate.
Other States Take The Lead on Crypto Regulation
The passing of this bill in Missouri highlights the trend of individual states taking the lead on cryptocurrency regulation, as federal lawmakers have been criticized for their lack of activity in this area.
In February, Montana passed a similar bill to that Missouri passed today. The Montana bill was drafted with the help of a non-profit advocacy group called the Satoshi Action Fund. It seeks to protect the right to mine Bitcoin and other cryptocurrencies, prevent discriminatory fees imposed on miners, and prevent the introduction of increased taxes.
Legislators in Wyoming also passed a bill to protect anyone engaging with digital assets. Unlike the ones from Montana and Missouri, the Wyoming bill passed in mid-February is aimed at the maintenance of the security of individual private keys.
The passing of this bill in Missouri is a positive development for the crypto industry, as it offers much-needed protection for miners.
The trend of individual states taking the lead on cryptocurrency regulation is a welcome development, as it highlights the need for clear and concise legal frameworks that protect the rights of all those involved in the industry.
While federal lawmakers have been criticized for their lack of activity in this area, the recent introduction of the Keep Innovation in America Act is a positive sign that they are beginning to take notice.