TL;DR Breakdown
- Texas is positioning itself to be the nerve center of Bitcoin (BTC)mining in the US. Towards this end, it has passed crypto-friendly laws it hopes will woo investors.
- The state sees a boon in China’s continuing onslaught on the crypto industry. It is setting itself up to tap into ‘The Great Miner Migration.’ But it faces stiff competition from states at home.
Texas is rolling a red carpet welcome for Bitcoin miners. And in a strange twist of events, it’s getting help from the unlikeliest of places – China.
The state is presenting itself as America’s preferred destination for BTC mining. It is therefore putting up structures to accommodate investors in the crypto field. Among those, it’s targeting are victims of China’s cryptocurrency purge.
Several factors favor the state’s push to be America’s BTC mining nerve center. First, they have a pro-crypto governor. Greg Abbot and his government openly support crypto. The governor has recently posted on Twitter about the state becoming a crypto leader. He has gone as far as stating that crypto is coming to Texas’ grocery stores.
Texas has pro-crypto laws
Secondly, it has set up infrastructure to woo investors in the digital assets space. For instance, it adopted two pro-crypto bills in September. These pieces of legislation make the state an attractive investment destination for crypto miners.
The governor signed these two bills, HB1576 and HR 4474, making them law on 1st September. The first law creates a working party on Blockchain (BC) technology. Its membership consists of members from academia and officials working with the Texas state. On the other hand, HB 4474 recognizes crypto as a payments system.
Texas becomes the latest state to recognize crypto. It follows in the footsteps of other states such as Wyoming and Rhode Island that did so before. Additionally, all of its state-chartered banks can hold crypto assets. This follows the state’s Commissioner’s authorization.
One other thing that’s working to Texas’ advantage is that it has a BC council. Lee Brachter leads the council that has a membership of 70. Brachter’s group has organized the Texas BC Summit, a one-day meet bringing together the best minds in crypto. The organization is pushing for a constitutional amendment to allow residents to pay tax in BTC.
The BC Summit could yet be the largest one-day event on BC held in the state. Governor Abbott has met the team behind organizing the event twice already. This is his way of lending his support to the sector again.
The China factor in Texas’ crypto push
As indicated earlier, China is turning out to be a key player driving Texas’ crypto stand. It has ground mining activity by waging an anti-crypto campaign. Its outlawing of crypto mining and transactions has seen crypto lovers and investors to crypto-friendly areas.
Texas sees opportunity in this ‘Great Mining Migration.’ Besides the pro-crypto regime, there are other incentives it’s dangling to the investors. These include its business-friendly environment and abundant supply of affordable power. Since BTC mining is a labor-intensive venture, the latter is a plus for migrating miners.
But Texas isn’t alone in this quest. Other states are also positioning themselves as the best destinations for crypto mining activity. States like California, Wyoming, Florida, California, and Colorado have quickly set structures attractive for crypto investors. These are setting the pace in this area. And the rest, including Texas, are playing catch up.
One thing that’s sure is Texas will have to do a lot more to tap the majority of the migrating miners. That said, the major impediment to crypto development is legislation. And the state is doing the right things by laying the framework for the industry’s takeoff.
