It is believed that Montana's legislation acts as a preventive measure in response to regulatory challenges faced by crypto miners in other states.
Montana Governor Greg Gianforte has legislated a law that primarily restricts local governments from imposing regulations against cryptocurrency mining in the state.
Governor Gianforte signed SB 178 into law on May 2nd, following its approval by both the state House and Senate.
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The newly enacted legislation safeguards the rights of crypto miners in Montana by modifying existing laws, preventing discriminatory electrical rates for mining operations, and disallowing taxes on crypto used for payments.
The motivation behind the bill seems to be a preventive measure in response to regulatory challenges faced by digital asset mining in other states. For instance, recently, Texas state Senate lawmakers introduced a bill aimed at curbing incentives for crypto miners through a program designed to compensate them for reducing the load on the state's power grid.
Crypto advocacy group Satoshi Action Fund has backed several pro-mining legislation in various states. For example, in Arkansas, a bill similar to Montana's SB 178 was passed by all state legislators.
According to Dennis Porter, CEO of Satoshi Action Fund, Arkansas Governor Sarah Huckabee Sanders has already signed the bill into law. Porter expressed optimism regarding progress at the state level, stating:
At the state level, we can have a lot of progress, we can move things forward, and there isn’t a whole lot the federal government can do in the meantime.
While similar pro-mining legislation in Mississippi's state legislature stalled in March, a Missouri bill is allegedly "a little further behind in the process" but still advancing.
On the other hand, the Biden administration has recently revived a proposal to impose a 30% tax on cryptocurrency miners as part of the FY2024 budget, potentially targeting miners' electricity consumption.
Montana's new law highlights the state's support for cryptocurrency mining, providing a more favorable environment for the industry in contrast to the proposed federal tax on mining operations.
