America is known for the Second Amendment. In fact, the right to arms can be described as one of the national characteristics of the American state. Some will say that without second amendments the United States would remain simply an overseas Europe. And what is happening now with bitcoin regulation could become the very legal pillar of the American nation.
The right to “keep and bear arms” was included to ensure national defense, check federal tyranny, and balance power between the people, the states, and the federal government. Antifederalists believed that a centralized standing army, established by the Constitutional Convention, gave the federal government too much power and potential for violent oppression. In 2008, the Supreme Court ruled in District of Columbia v. Heller that the Second Amendment protects the individual right to bear arms for self-defense. This ruling was extended to state and local laws in 2010 through McDonald v. City of Chicago. No need to delve deeper into it. Let's move on to how it relates to bitcoin.
The last five years could be described as wonderful and tough for American bitcoiners and specifically for miners. Free market values and cheap electricity (the latter perhaps more so) created a huge market and a huge community for bitcoin mining companies. At the same time, uncertainty in tax regulation made life extremely difficult for those companies. You simply can't do business if you don't know how to file taxes. This made the United States look more like a third world country in terms of doing business.
In addition to this, there was great pressure from the European Union's MiCa regulation. Huge law that defines almost every aspect of the Web3 economy. A true son of European bureaucracy. Some say that the regulation is strict and not comfortable, but at least it provides certainty. After that, many companies began to open branches in the EU with the aim of relocating completely. It seemed like the United States was losing cryptocurrencies.
But in recent months a few things have happened. And as a lawyer, I think this could be groundbreaking. I am referring to the initiative of the right to what is mine. The Satoshi Action Fund has published a model “Right to Mining” bill to protect commercial crypto mining operations from local oversight and regulations. Key provisions of this model bill include:
- Prohibit localities from enacting zoning and noise ordinances that could limit the operation of noisy crypto mining facilities.
- Prevent utility regulators from adequately supervising crypto mining operations and setting appropriate electricity rates that take into account costs, impacts on the grid, and effects on other consumers.
Several states have passed or proposed similar “right to mine” bills, including Arkansas, Montana, Missouri, Mississippi, Louisiana and Virginia. These laws aim to protect crypto mining activities from government interference and regulation. The common goal of these efforts is to establish a “bitcoin fundamental right” that prevents states and localities from restricting or properly managing the crypto mining industry.
Both the Second Amendment and the “right to mine” bills are based on the desire to limit government interference and preserve individual and state rights. Both aim to balance power between the federal government, the states, and private individuals/entities. They share the same values. And they could have similar consequences.
Similarly, the question of centralization or decentralization of the right to mine cryptocurrencies is now emerging. On the one hand, some states and senators are trying to restrict or regulate mining due to environmental concerns and strain on power grids. On the other hand, the Satoshi Action Fund and other lobbyists advocate for a “right to mine”, advocating a decentralized approach without excessive government intervention.
If successful, the Satoshi Fund initiative could give a boost to the Web3 economy in the United States compared to the post-World War I boom. And the most interesting thing is that this initiative represents that perhaps Web3 does not need a large, well-developed regulation. It is enough to have a very basic piece of land and leave everything in the hands of the market. The most interesting thing is that it is a totally different approach from that of the European Union. I can't say which is better, but I'm sure that variety could lead to regulatory competition. And any competition is for the good of the community.
Gun rights were groundbreaking for American history. It focused more on external enemies, but actually allowed people to defend independence and freedom. The right to mining or fundamental right of bitcoin is more focused on financial freedom.
As a non-American lawyer, I have been very pessimistic in recent years. I thought it wasn't the country it used to be. The bitcoin community faces a totally different reality than previous generations who managed to make the American economy the largest in the world. But what is happening now makes me believe that perhaps America still has the spirit and that this spirit is much more connected to the Web3 economy than it might seem at first glance.
This is a guest post by Artem Afian. The opinions expressed are entirely their own and do not necessarily reflect those of btc Inc or bitcoin Magazine.
