The state of Montana is making progress in securing the rights of cryptocurrency miners in the region. Following the introduction of a new bill, the Montana Senate has moved to ban unfair regulations and discriminatory rate classifications for digital asset miners in the state.
The legislation aims to create legal certainty for digital asset mining businesses, providing them with protection against arbitrary restrictions and ensuring fair and transparent conditions for the industry to thrive.
The Montana Senate recently passed a bill aimed at revamping the cryptocurrency laws in the state. The legislation seeks to protect the rights of businesses and individuals to mine digital assets and creates legal certainty for the industry.
The bill also recognizes digital assets as personal property, and prevents taxation on their use as a payment method.
According to supporters of the bill, cryptocurrency mining provides significant economic value to individuals and companies in the US. However, the industry has often faced difficulties with regulations at the state and local levels.
The new legislation aims to protect the industry from unfair regulations and discriminatory rate classifications.
Montana wants to prohibit discriminatory rates
The new legislation prohibits the Montana Public Service Commission from establishing rate classifications for digital asset mining that create unduly discriminatory rates.
The bill defines digital asset mining as the use of electricity to power a computer for the purpose of securing a blockchain network.
It also prohibits the commission from establishing rate classifications for data centers, digital asset mining businesses, and home digital asset mining that create discriminatory rates.
Moreover, the legislation provides for the creation of clear definitions for key terms used in the digital asset mining industry, including digital asset mining, digital asset mining business, discriminatory rates, data center, and home digital asset mining.
By doing so, it will be easier to distinguish digital asset mining from other industrial uses of electricity and reduce the likelihood of arbitrary restrictions and unfair regulations.
Prohibition of local government powers
The bill also prohibits the governing bodies of cities, towns, or counties from enacting ordinances or resolutions that impose requirements on digital asset mining businesses that are not also requirements for data centers in their area of jurisdiction.
Additionally, governing bodies may not prevent digital asset mining businesses from operating in an area zoned for industrial use, or prevent home digital asset mining at a private residence, except as related to existing noise ordinances.
The bill allows existing digital asset mining businesses to continue operating regardless of any changes in zoning or regulations. Another significant aspect of the new legislation is its recognition of digital assets as personal property.
This means that owners of digital assets will have similar property rights to owners of physical assets. Digital assets can now be used as collateral and can be sold or transferred like other forms of personal property.
The mining of digital assets will benefit from the legal clarity that will be provided by these measures, which will also stimulate the industry’s expansion and development in the state of Montana.