Montana State Crypto Mining Bill Seeks Protection of Miners

The Senate of US Montana State recently passed a bill on Thursday, February 23. The bill intends to safeguard the crypto mining companies from the potential threat of strict actions against them in the wake of tightening scrutiny over the crypto industry.

The ‘Detail Bill Information’ states that the Senate passed the proposed law with 37 votes in favor and 13 against it. When the Senate passes the proposal, it will be presented to the House, seeking approval.

The proposed bill seeks the protection of domestic crypto mining operations, keeps the miners’ discriminatory utility rates in check and ensures that cryptocurrency payments will not be charged with taxes. It would also ensure the prevention of moving the mining activities or use of “zoning laws” seeking to ban the continued mining operations.

Given the provision of sidelining the zoning law, the bill would challenge the 2020 zoning ordinance passed in Missoula County. The ordinance made it mandatory for bitcoin mining firms to either purchase or develop their renewable energy assets, which would equal the consumption of energy spent in mining.

As cryptocurrencies became popular and widely adopted, almost every related operation followed it too. From crypto trading to mining, the broader crypto industry has seen many sectors evolve, as have many prominent companies. Crypto mining, among all, is one of the controversial sectors for several reasons, including heavy energy consumption and its effect on the environment. Despite the concerns, the industry seeks growth and development to nurture the overall crypto industry and the regional economies.

Many environmentalists and authorities often call out the efficacies of crypto mining on the environment, acting as a potential reason for the country to lag behind its goals to achieve carbon neutrality. The tussle remains there as the miners keep fighting while opposing any actions against the industry.

The mining industry has already been going through a tough phase in the wake of crypto winter, which resulted in many cryptocurrencies hitting their recent lows. The wrath of bad market conditions was so fierce that many prominent companies went on to file for bankruptcy while the rest had to empty their Bitcoin (BTC) stash to continue their operations.

Several reports state that public miners have notably dropped their bitcoin holdings during the last year. The overall BTC holdings peaked in April 2022 with about 46,930 BTC, which dropped to 31,892 in January 2023. This indicates a significant decline of 32% in just ten months.

Major crypto miners, including Bitfarms, Core Scientific and Northern Data, were among those who sold their bitcoin to maintain liquidity. At the same time, public miners like Marathon Digital, Hut 8 and Riot Platforms managed to keep their holdings concentrated while continuing operations.