The state governor of Montana blocks initiatives from local governments to increase the electricity rate for cryptocurrency miners. He considered this discriminatory treatment unacceptable.
Greg Gianforte, Montana’s governor, has introduced new legislation that makes it difficult for local state governments to pass laws banning or restricting cryptocurrency mining. The law, enacted on Tuesday, May 2 by the Montana state House and Senate, guarantees Bitcoin miners new opportunities while amending existing laws. Now mining companies will not be discriminated against through electric rates, and cryptocurrencies used as a payment method will not be taxed.
The introduction of the new regulations is in part a response to proposals from other states that are also struggling with troubled perceptions of digital assets. In April, the Texas Senate introduced a bill to reduce incentives for cryptocurrency miners by participating in a program to compensate them for reducing the load on the state’s power grid.
As Gianforte himself said: “Cryptocurrencies are an integral part of our future and deserve a stable and favorable environment for development. The new regulations will ensure this for miners and mining companies in Montana.”
Arkansas is following suit and also supports crypto
The Satoshi Action Fund (SAF), a cryptocurrency advocacy group, has actively supported the introduction of pro-mining laws in some states recently. A similar law to the one in Montana was passed by the ruling Arkansas state House and Senate. According to SAF CEO Dennis Porter, Governor Sarah Huckabee Sanders has already managed to sign the relevant document. However, the legislature’s website at the time of publication showed no confirmation of this fact.
Porter expressed his belief that much progress can be made at the state level and the regulatory process can be accelerated, while the federal government is not in a position to do much at this time.
As Porter said, “We are very pleased with the progress we have made in Arkansas. This is an important step forward for our industry, and we are proud to have been able to help. We believe we will see even more pro-mining legislation at the state level in the future.”
U.S. advocacy efforts for Bitcoin
Various ideas for regulating cryptocurrency mining are emerging across the United States. Some regions are passing laws that make mining easier, while others are passing laws that block it. For example, similar ideas to those in Montana and Arkansas have been considered in Mississippi and Missouri. Unfortunately, in Mississippi, the introduction of the new law was suspended in March. In Missouri, on the other hand, draft market regulations are still under deliberation.