Lawmakers in the American state of Mississippi have enacted a law that legalizes cryptocurrency mining and protects the rights of cryptocurrency miners.
The bill, called the Mississippi Digital Asset Mining Bill, protects crypto miners from discriminatory energy rates often imposed on the mining industry.
The Mississippi Digital Asset Mining Act
Lawmakers in the state of Mississippi have moved to safeguard the rights of cryptocurrency miners in the state by passing the Mississippi Digital Asset Mining Act. The bill legalizes home cryptocurrency mining and the operations of mining businesses in designated zones for industrial use. It also prohibits the Public Service Commission from imposing discriminatory interest rates on miners and mining businesses.
The bill was introduced by Senator Josh Harkins, who reasoned that the mining sector has the potential to stabilize the power grid and provide revenue for infrastructure projects planned across the state. Following considerable deliberation, lawmakers passed the bill on the 9th. Mississippi has several crypto miners already operating in the state, with the lowest electricity rates in the country.
“It shall be legal in the State of Mississippi to run a node for the purpose of home digital asset mining” and “operate a digital asset mining business.”
The news was announced on Twitter by Documenting Bitcoin, which tweeted,
“₿𝗥𝗘𝗔𝗞𝗜𝗡𝗚: Mississippi Senate passes historic bill protecting #bitcoin mining. “It shall be legal in the State of Mississippi to run a node for the purpose of home digital asset mining” and “operate a digital asset mining business.”
Details Of The Bill
Apart from legalizing cryptocurrency mining in the state, the bill states that miners can set up their rigs in designated industrial areas. It also makes it illegal to impose discriminatory energy rates on miners and mining businesses by the Public Service Commission, which is in charge of regulating utilities. Furthermore, the bill also provides the state with a legal definition of “virtual currency.”
The bill is set to take effect from the 1st of July, 2023, pending approval from the House members and state Governor.
Streamlining The Use Of Orphaned Oil And Gas
CEO of the Satoshi Action Fund, Dennis Porter, outlined how crypto miners can use orphaned oil and gas wells as a power source. Mississippi is one of the states in the US where the Satoshi Action Fund has been fairly active. The Senate and the House bills also mention orphan wells. The House bill also outlined a plan to set up a Digital Asset Mining Council, which would consider the use of the orphan wells as a power source, along with other issues. The House Bill has so far passed the Ways and Means Committee but is yet to be debated on the House floor.
The State Of Crypto Mining In The US
After the Chinese announced a ban on crypto mining, activity has picked up in the US as miners move operations here. According to the available data, two pools based in the US (Foundry and Antpool) control over 51% of the global hash rate. The state of Texas is the destination of choice for miners, with over 30 mining companies currently operating in the state. However, some lawmakers have argued that mining operators disclose their consumption to regulatory agencies.
Mississippi’s new legislation is in stark contrast with the two-year moratorium on mining which was passed in New York.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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