Missouri passes crypto mining protection law Zeynep Geylan · 7 seconds ago · 2 min read
The “Digital Asset Mining Protection Act” will be voted on the Missouri House floor before moving to the Senate.
2 min read
Updated: March 7, 2023 at 8:46 pm
Cover art/illustration via CryptoSlate
Ad The U.S. state of Missouri passed the “Digital Asset Mining Protection Act” on March 7 to protect the rights of crypto miners.
The bill won’t allow state and political subdivisions to halt crypto mining nodes’ work. The bill summary stated:
“The “Digital Asset Mining Protection Act” “precludes the state and political subdivisions from prohibiting the running of a node or series of nodes for the purpose of home digital asset mining,”
The bill ensures that crypto-mining companies are subject to the same laws as other businesses so that specific laws can’t target them. It primarily aims to prevent energy companies from applying discriminatory tax rules to mining corporations.
The bill also mandates the state to give “proper notice” before making adjustments to the rules related to crypto mining. Naturally, this bill legalizes crypto mining and allows institutions to participate in mining activities within zones approved for industrial use.
The bill passed with a unanimous vote of 12 to zero in favor, securing the support of both Democrats and Republicans. However, this is an amended version of the bill, which means it needs to be passed by the Missouri House committee before moving to the Senate, as Blockwork reports.
Mining in the U.S.The U.S. is one of the leaders in crypto mining. According to the data from October 2022, two mining pools in the U.S., Foundry, and Antpool, account for over 51% of the global hash rate. Hosting over 30 mining companies within its borders, Texas comes forward as the mining hub of the country.
The most recent development on the mining front within the U.S. came from Mississippi. In February, the Mississippi senate passed a legislative bill that legalized Bitcoin (BTC) mining within the state. Similar to Missouri’s Act, Mississippi’s bill also ensured that mining companies weren’t subjected to any discrimination.
A contrasting attitude towards mining came from New York in June 2022. The New York senate passed a bill that bans any new proof-of-work (PoW) mining operations from starting for three years.
The state of Missouri, USA, recently passed a law to protect cryptocurrency miners from unfair or illegal fees. The bill, SB 660, would protect those who generate digital assets such as Bitcoin or other cryptocurrencies, from being charged unreasonable or illegally elevated electricity or other fees.
The bill was sponsored by state senator Andrew Koenig and was unanimously passed by the Senate on April 3rd, 2021. It is expected to take effect August 28th of this year.
Reaction to the bill has been mostly positive, with support from many people involved in the crypto industry. Supporters have praised the state of Missouri for acknowledging the importance of cryptocurrency mining. They claim that cryptocurrency mining is an important part of the cryptocurrency economy and that laws like this will help protect miners from exploitation.
Rayne Steinburg, CEO of a crypto mining company, has praised the law. “We welcome this news. It shows that Missouri values the efforts of crypto miners, and wants to make sure that we can continue to operate without fear of potential exploitation.”
The bill has also faced criticism, however. Opponents claim that the protections go too far, and could hamper innovation in the state. Others worry that it could lead to higher energy costs, as companies may be hesitant to invest in cryptocurrency mining if the fees are limited.
In the end, the decision to pass this law remains up to the residents of Missouri. Whether they believe it’s a great way to protect crypto miners or just an overly protective measure, is up to them to decide.
