Montana has passed a bill that establishes a “digital asset mining right” and prevents discriminatory electricity rates charged to cryptocurrency miners, while safeguarding mining operations “at home” and removing local governments’ authority to impede crypto-mining activities.
The bill provides every citizen with the right to mine cryptocurrency and every company with the right to set up a commercial mining operation. It prohibits discriminatory utility rates on miners and extra taxes on using cryptocurrency as a means of payment.
Despite concerns around the environmental impact of crypto mining, the industry is showing no signs of slowing down, and the passing of pro-crypto bills like this one could provide a significant boost to local economies.
The state of Montana has recently passed a bill that seeks to enshrine the rights of crypto miners in the state. The bill, numbered 178, seeks to establish a “digital asset mining right” and prevent any discriminatory electricity rates charged to cryptocurrency miners. Additionally, it aims to safeguard mining operations that take place “at home” and remove the authority of local governments to use zoning laws to impede crypto-mining activities.
The legislation had already passed through the Senate in February and was recently approved by the state’s House of Representatives. It now awaits Governor Greg Gianforte’s signature. Governor Gianforte is a member of the Republican party, and the bill’s sponsor, state Senator Daniel Zolnikov, also belongs to the Republican party, which makes it unlikely that he will veto the bill.
The amended bill draft contains one significant change compared with the original draft, with section three significantly shortened. The old version of section three occupied almost three full pages and included several articles unrelated to crypto mining. Now, section three outlines three specific areas limiting the power of the local authorities, including a restriction on imposing different requirements on mining centers from those on data centers.
The bill establishes that mining crypto is every individual’s right and prohibits the government from restricting mining operations in residential or industrial areas. It also bars any extra taxes on using cryptocurrency as a means of payment and categorizes “digital assets” such as cryptocurrencies, stablecoins, and non-fungible tokens as “personal property.”
The bill aims to revise and establish laws around mining and cryptocurrencies. It provides every citizen with the right to mine cryptocurrency at home and every company with the right to set up a commercial mining operation. Additionally, it prohibits the government from imposing discriminatory utility rates on miners or restricting mining operations by utilizing zoning or environmental laws. Discriminatory rates are defined as being substantially higher than what other industrial uses of electricity are charged in similar geographical areas.
This revolutionary bill also prohibits the government from imposing taxes on cryptocurrencies used as a method of payment. A state or local government entity cannot charge an additional tax, withholding, assessment, or charge on the value of digital assets when used as a method of payment. It establishes digital assets as private property and gives them the same protection under U.S. constitutional law. Digital assets include cryptocurrencies, stablecoins, and NFTs.
This bill is an essential step for Montana as it seeks to establish itself as a crypto-friendly state. The legislation ensures that every citizen can exercise their right to mine cryptocurrency without any discrimination from local authorities or the government. It provides the necessary framework for businesses and individuals to engage in mining operations without fear of legal or regulatory hurdles.
Montana’s move towards crypto mining rights is a significant step towards establishing a more comprehensive regulatory framework for the crypto industry in the United States. With this new legislation, Montana joins the ranks of other states such as Wyoming, Texas, and Florida that have also passed pro-crypto bills, creating an environment for innovation and growth in the industry.
This legislation is crucial as the U.S. crypto industry has faced significant regulatory uncertainty in recent years. The lack of clear regulatory guidelines has made it challenging for businesses and individuals to operate in the industry. However, with the introduction of crypto-friendly bills, such as the one in Montana, the industry can thrive and provide much-needed economic growth and job creation. In conclusion, Montana’s ‘right to mine’ crypto bill is a significant milestone in establishing the rights of crypto miners in the state. The bill is designed to safeguard mining operations, prohibit discriminatory utility rates and taxes, and establish digital assets as private property. The move towards a more comprehensive regulatory framework for the crypto industry is a welcome development that will provide businesses and individuals with the necessary legal and regulatory framework to operate in the industry. As more states pass pro-crypto bills, it is possible that the United States will eventually establish a more uniform approach to regulating cryptocurrencies, which will provide greater clarity and certainty for businesses and individuals operating in the industry.
However, some critics have raised concerns about the environmental impact of crypto mining. Mining cryptocurrency requires significant amounts of energy, and some mining operations rely heavily on fossil fuels. This has led to criticism from environmental groups, who argue that crypto mining is contributing to climate change.
Proponents of crypto mining argue that the industry is constantly innovating and finding ways to reduce its environmental impact. Some mining operations are now using renewable energy sources, such as solar and wind power, to power their operations. Additionally, new technologies, such as proof-of-stake, are being developed to reduce the energy requirements of crypto mining.
Despite the concerns around the environmental impact of crypto mining, the industry is showing no signs of slowing down. The total market capitalization of cryptocurrencies reached an all-time high of over $2 trillion in April 2021, and many experts predict that the industry will continue to grow in the coming years.
In Montana, the passing of the ‘right to mine’ crypto bill is expected to attract more crypto miners to the state. This could provide a significant boost to the state’s economy, creating jobs and generating revenue for local businesses. The bill’s provisions prohibiting discriminatory utility rates and taxes on cryptocurrencies used as a method of payment could also make Montana an attractive location for businesses that rely on cryptocurrency payments.
The passing of Montana’s ‘right to mine’ crypto bill is a positive development for the crypto industry in the United States. The bill establishes clear rights for crypto miners and provides a framework for businesses and individuals to engage in mining operations without fear of legal or regulatory hurdles.
While concerns around the environmental impact of crypto mining persist, the industry is showing no signs of slowing down, and the passing of pro-crypto bills like this one could provide a significant boost to local economies. As more states pass similar legislation, the United States may eventually establish a more uniform approach to regulating cryptocurrencies, providing greater clarity and certainty for businesses and individuals operating in the industry.