Democrat Senators call Texas ‘Deregulated Safe Harbor’ for Bitcoin miners
ambcrypto.comA group of seven U.S. senators from the Democratic Party, led by Massachusetts Senator Elizabeth Warren, have called Texas a ‘deregulated safe harbor’ for Bitcoin miners.
The group has sought related financial and operational details from the Electric Reliability Council of Texas (ERCOT), a private body that operates Texas’s electrical grid.
The senators have written a letter to ERCOT CEO Pablo Vegas, alleging that the state is aggressively courting crypto miners, who are drawn to the state’s cheap power and laissez-faire regulation. The issue raises concerns about these operations adding to the stress on the state’s power grid.
The group has sought information from ERCOT on (i) energy consumption by cryptocurrency mining operators and (ii) their CO2 emissions in Texas over the last five years.
They have also asked for information on subsidies paid by Texan regulators to Bitcoin mining companies to lower electricity consumption during periods of peak demand.
In September 2021, the BBC published a report that China’s ban on crypto mining in May 2021 forced many cryptocurrency mining entrepreneurs to move abroad. A large number moved to the American state of Texas which is emerging as the global cryptocurrency capital.
Texas is one the cheapest energy providers in the world as the power grid in the state is deregulated. During peaks of electricity demand, crypto mining farms can even sell unused power back to the grid.
In June 2021, Greg Abbott, the Governor of Texas, tweeted, “It’s happening! Texas will be the crypto leader.”
The Texas Comptroller’s office published a newsletter in August this year that underscored the state’s position in relation to hosting long-term mining operations in the region.
The officials believe that
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