Greg Gianforte, Montana Governor, has signed a pro-crypto mining bill into law, which might boost bitcoin mining. The bill, known as S.B. 178, prohibits Montana’s local governments from setting up laws that discriminate against cryptocurrency miners.
The legislation also revises existing laws and prohibits discriminatory electrical rates for mining firms. Moreover, it forbids taxation for digital assets used as a payment method.
The new law in Montana is a proactive measure that aims to protect the rights of crypto miners. In certain places, politicians are proposing legislation to curb incentives for cryptocurrency miners by limiting their participation in an initiative to reimburse them for load reductions on the state’s electricity system.
— Satoshi Action Fund (@SatoshiActFund) May 4, 2023
The move is a win for digital assets advocacy groups, including the Satoshi Action Fund, which has supported pro-mining legislation in several states. The Satoshi Action Fund CEO, Dennis Porter, says that enacting such bills at the state level is a positive step forward, given the lack of action at the federal level.
Mississippi and Missouri have also been considering similar pro-mining bills, but the bill died in March, and the latter is lagging in the legislative process.
Biden Administration Proposes 30% Tax on Crypto Miners
While Montana’s new law is a boon for crypto mining, the Biden administration takes a different approach. The administration has repeated its call for a 30% tax on crypto miners as part of its FY2024 budget plan.
The proposed tax would target miners’ electricity usage and could be an attempt to curb the energy consumption associated with mining. Critics claim that the levy would hinder innovation and limit the expansion of the cryptocurrency business.
Montana’s pro-crypto mining bill and the Biden administration’s proposed tax highlight the ongoing tension between government regulation and the decentralization of digital assets. While some states are actively promoting crypto mining, the federal government is considering measures to restrict it.
However, it remains to be seen how state and federal politicians will respond as the crypto sector evolves. Montana’s pro-crypto mining legislation is a welcome development for the state’s miners. It might be a model for other governments wanting to assist the digital assets business.
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