Montana’s Governor, Greg Gianforte, recently signed a bill that prevents local governments from creating laws that would ban cryptocurrency mining. The new legislation also amends existing laws that prevent mining companies from facing discriminatory electrical rates and taxation on cryptocurrency used as a payment method.
This move is seen as a proactive measure to protect the interests of miners in Montana, especially since similar laws have faced challenges in other states. The bill’s approval comes as interest in cryptocurrency mining continues to grow across the United States, and policymakers work to establish the necessary regulatory framework to manage this emerging industry.
All about the Crypto Mining Bill
In January 2021, the Montana State Senate put forward Senate Bill 178, which aims to support cryptocurrency mining activities. The bill’s primary objective is to safeguard mining activities by preventing local governments from enacting laws that would obstruct mining activities. Furthermore, the bill includes provisions that prohibit any form of discrimination against mining companies regarding electrical rates and the taxation of crypto used as a payment method.
Supporters of the bill argue that cryptocurrency mining activities are crucial to the state’s economy as they create job opportunities and increase revenue. However, opponents of the bill raise concerns that mining activities consume a significant amount of energy and could result in environmental pollution. Despite these concerns, the bill was approved by both the state House and Senate and was signed into law by Gianforte on May 2, 2023.
Implications of this Move
Montana’s pro-cryptocurrency mining bill approval is seen as a positive development for miners across the state and the US. Further, the bill establishes a regulatory framework for cryptocurrency mining activities in Montana and serves as a model for other states.
Cryptocurrency mining has grown in popularity in the US, with the country accounting for 7.24% of global bitcoin mining activity, making it the second-largest bitcoin mining country after China. As policymakers at both state and federal levels grapple with how to regulate this emerging sector, interest in cryptocurrency mining continues to surge.
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