Montana Governor Greg Gianforte has approved a bill that significantly restricts local governments in the state from passing laws that prevent cryptocurrency mining.
According to state legislature records, the bill, known as S.B. 178, was signed into law on May 2nd after it had passed through the state House and Senate. The new legislation revises existing laws to safeguard the rights of crypto miners in the state by prohibiting unfair electrical rates for mining companies and not allowing taxes on crypto used as a means of payment.
The bill’s latest version was introduced as a preemptive measure in response to some suggestions in other states, which would limit incentives for crypto miners through participation in a program intended to compensate them for load reductions on the state’s power grid.
BREAKING: The State of Montana has officially signed the ‘Right to Mine’ #Bitcoin bill into law. pic.twitter.com/f3PD1WgTOW
— Satoshi Action Fund (@SatoshiActFund) May 4, 2023
Crypto advocacy group Satoshi Action Fund supports pro-mining legislation in some states, and Arkansas and Montana have already passed similar bills. However, some legislation, such as the bill in Mississippi, has stalled.
At the federal level, the Biden administration proposes a 30% tax on cryptocurrency miners as part of the FY2024 budget, potentially targeting miners’ electricity usage.
