The US state of Mississippi is one step closer to protecting the rights of cryptocurrency miners after the state senate approved the Mississippi Digital Asset Mining Act on February 8. There is a companion bill under consideration in the state house of representatives.
The Senate bill, authored by state Senator Josh Harkins, legalizes mining of digital assets at home and operating mining businesses in areas zoned for industrial use. There are already crypto miners operating in Mississippi, which has some of the lowest electricity rates in the country. However, the bill stated:
“Digital asset mining has often faced regulatory challenges at the state and local level.”
In addition, the bill prohibits limiting domestic mining noise beyond existing limits, imposing requirements on miners beyond those that apply locally to data centers, or changing the zoning of a mining facility without notice. adequate and the opportunity to appeal. Prohibits the Public Utility Commission from imposing discriminatory rates on mining companies and exempts domestic and commercial miners from money transmitter status.
The bill also provides the state with a legal definition of “virtual currency.”
Related: Bitcoin Price Is Up, But BTC Mining Stocks Could Remain Vulnerable Throughout 2023
Mississippi is one of the states where the Satoshi Action Fund has been active. The fund’s executive director, Dennis Porter, spoke at a meeting of the Mississippi Senate Finance Committee in January and mentioned the potential for crypto miners to use orphaned oil and gas wells as a source of energy.
₿: Mississippi Senate passes landmark bill protecting #bitcoin mining
“It shall be legal in the state of Mississippi to run a node for the purpose of mining digital assets at home” and to “operate a digital asset mining business” pic.twitter.com/AiVbw9AtIi
— ₿itcoin Documentation (@DocumentingBTC) February 9, 2023
Both the Senate and House bills mention orphan wells. The house bill would establish a state Digital Asset Mining Council that would consider the use of the shafts as a source of mining power and other issues throughout the year. The house bill has approved the Ways and Means Committee, but it has not been debated in the House.
The Mississippi legislation stands in stark contrast to the two-year moratorium on crypto mining passed in New York and signed into law in November.
