S.B. 178, a pro-cryptocurrency mining measure, has been signed into law by Montana Governor Greg Gianforte. The action effectively preempts municipalities in Montana from banning bitcoin mining.
Satoshi Action Fund, a cryptocurrency advocacy organization, has backed pro-mining laws in a few jurisdictions. A law similar to S.B. 178 in Montana was recently enacted by the legislatures in both Arkansas and Montana.
While Dennis Porter, CEO of the Satoshi Action Fund, claimed that Arkansas Governor Sarah Huckabee Sanders had signed the bill into law before publication, the state legislature’s website did not reflect this change.
The bill codifies the rights of cryptocurrency miners in the state by changing the legislation to forbid charging mining companies higher electricity costs and to forbid taxing cryptocurrency as a medium of exchange.
The measure was presented partly as a reaction to proposals in other jurisdictions that would have impeded state and municipal digital asset mining. For instance, the Texas Senate sponsored a measure to curb the motivation for crypto miners to participate in a scheme that would reimburse them for reducing strain on the state’s electricity system.
It is hoped that by passing this legislation, Montana will become a more attractive location for crypto mining companies. The cryptocurrency mining sector has exploded recently, prompting a global arms race to woo miners with tax breaks and other inducements.
Montana has taken a significant step forward in establishing a more conducive climate for the cryptocurrency business in the United States by legalizing cryptocurrency mining. Although some states have passed legislation to limit or outright ban cryptocurrency mining, Montana’s decision to establish a legal framework for the industry will likely entice more miners to shop there.
Some experts argue that bitcoin mining can help promote the use of renewable energy sources, despite the controversy surrounding it due to concerns about energy consumption and environmental impact. Miners have a financial and environmental incentive to switch to renewable energy.
The decision by Montana to permit cryptocurrency mining is excellent news for the cryptocurrency sector in the United States. More miners will be drawn to the state, and new developments in mining technology are anticipated due to the favorable policy climate. Government agencies must guarantee that mining is done safely for the environment and the people living nearby.