Montana's Bitcoin and other cryptocurrency mining law moves forward and receives approval, on its third reading, from the state House of Representatives.
Montana has approved a bill in favor of cryptocurrency mining, which seeks to constitute this activity as a right within the territory. The bill in question, called Right to Mine, passed its third reading in the state House of Representatives on April 12, a few weeks after receiving the Senate approval in February. Montana legislators approved the law with a vote of 64 in favor and 35 against.
Montana protects Bitcoin miners
Through this Right to Mine legislation, Montana seeks protect the right of citizens and companies to participate in Bitcoin mining and other digital assets.
State legislators aim to prevent local authorities from imposing discriminatory electricity rates, additional taxes or zoning restrictions on companies and miners engaged in this activity.
In line with other states and legislators in the country, Montana is recognizing that mining cryptocurrencies like Bitcoin can significantly contribute to the local economic development.
Daniel Zolnikov, United States Senator from the state of Montana, has highlighted the economic value of cryptoassets and their potential in the energy sector, primarily to stabilize the state's electrical grid by consuming excess energy and to improve existing infrastructure. Likewise, cryptominers have the ability to easily disconnect their equipment, thereby helping to guarantee the energy supply to millions of homes in times of high voltage and high demand.
The Right to Mine bill was introduced by the nonprofit Satoshi Act Fund, receiving support from Senator Zolnikov as its main proponent. To be officially declared law, it is expected to be signed by Governor Greg Gianforte in the coming days.
Crypto-friendly laws in the United States
In recent months, several states in the United States have been promoting the mining of Bitcoin and other cryptocurrencies through crypto-friendly laws, which seek to attract companies and investors in the sector. These states include New Hampshire and Arkansas, which passed similar bills defending Bitcoin miners.
In other states, such as Texas and Wyoming, legislators have also adopted favorable measures for the development of the crypto industry, in order to facilitate the regulation, taxation and custody of digital assets.
Wyoming generated a stir in 2019 when its legislature authorized the formation of special purpose depository institutions, or SPDIs, that can receive deposits and custodial assets, including cryptocurrencies, without needing a federal banking license. Additionally, in February 2021, the state of Wyoming passed a bill prohibiting state courts from forcing someone to reveal their private keys to digital assets, with one small exception.
On the other hand, Montana has also shown its support for the crypto sector in the past, authorizing the installation of a mining farm in 2018. For its part, Texas has also issued guidelines focused on recognizing the legal nature of cryptocurrencies and allowing banks the possibility of offering custody services for digital assets.
Initiatives such as Right to Mine demonstrate the interest of some states in exploiting the potential of blockchain technology and cryptocurrencies, as well as in positioning themselves as leaders in innovation and development in this field.
Continue reading: Arkansas becomes friendly to cryptocurrency miners
