Cody Harris, a representative from Texas, has submitted a resolution to show support for the state’s Bitcoin economy. House Concurrent Resolution 89 is to defend Texas-based Bitcoin investors, miners, and anyone who operates on the Bitcoin network.
— Natalie Smolenski (@NSmolenski) March 21, 2023
Moreover, if adopted, the resolution would not apply to the state’s laws and regulations but would express a sentiment among lawmakers. Harris added that Texas’ constitutional rights against unreasonable seizures or searches should extend to attempts to seize residents’ digital assets.
Protecting Bitcoin Miners & Holders
According to March 21st resolution, Harris urged Texas legislators to show their endorsement for safeguarding individuals who code or develop on the Bitcoin network, along with miners and Bitcoin enthusiasts who conduct their operations in Texas, emphasizing their distinctiveness.
The resolution said that:
individuals that mine Bitcoin in Texas shall never be restricted by any legislation or resolution that limits the activity of safeguarding the Bitcoin network for the protection of the virtual currency.
Moreover, any community members who utilize Bitcoin to manage their money and engage in peer-to-peer transactions with other law-abiding Texas residents should always feel free and secure in their ownership and usage of Bitcoin.
The resolution highlighted the action taken by the Chinese government to suppress crypto mining, which prompted numerous companies to relocate to Texas. Several firms operated in the Lone Star State, including Riot Platforms, Core Scientific, and White Rock Management.
According to Joshua Rhodes, a research associate at the Webber Energy Group at the University of Texas in Austin. Texas has historically had cheaper energy rates than other states, which attracts miners. Furthermore, these mining activities consider the cost of power as a significant input.
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However, Texas’ business laws recognize cryptocurrencies under the state’s Uniform Commercial Code as part of the modification. In addition, some federal senators have criticized Texas’ allegedly lax regulatory framework for the possible environmental harm brought on by the energy usage of the mining sector.
Texas’s governor, Greg Abbott, formally claimed himself to be a “supporter of the crypto law proposal” in the state. Florida Governor Ron DeSantis said Texas considered banning domestic and foreign central bank digital currency.