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- The resolution encourages bitcoin miners to search out energy to help safeguard the Bitcoin network.
- The Chinese government’s 2021 ban on bitcoin mining and trading has prompted a swift exodus of Chinese miners
- House concurrent resolution 89 primarily focuses on the issue of environmental harm.
In the U.S. state of Texas, a legislative proposal has been made to encourage the bitcoin economy. The proposal states, “The individuals who hold bitcoin should be protected” under the Texas Constitution.
No resident of Texas shall ever be denied the right to hold bitcoin. All bitcoin owners shall be safeguarded while taking advantage of all the benefits connected with the cryptocurrency.
Supporting the Bitcoin Economy Resolve
Rep. Cody Harris proposed House Concurrent Resolution 89 (HCR89), a piece of legislation, in the Texas House of Representatives on Monday to show support for the state’s bitcoin industry. Concurrent resolutions must be approved by the state’s House and Senate but lack the legal power of a statute.
The Texas Constitution’s Section 9, Article I states, “The people shall be secure in their persons, houses, papers, and possessions, from all unreasonable seizures or searches,” which should apply to people who own bitcoin. This right should also apply to digital possessions, such as cryptocurrencies.
The resolution also encourages bitcoin miners to search out any type of energy to help safeguard the Bitcoin network in Texas and seek support from the state government to defend individuals that code or develop on the Bitcoin network.
The resolution further states that no law or resolution that inhibits the practice of safeguarding the Bitcoin network for the protection of the virtual currency would ever prevent anybody from mining bitcoin in Texas.
What Will The Bill Provide?
The bill will give persons who own and engage in Bitcoin-related activities legal protection, including the immunity provided by censorship-resistant Bitcoin spending and the freedom to store Bitcoin in an unhosted wallet without interference from the government.
According to the bill, Bitcoin miners could use any energy to secure the network without being constrained by laws or resolutions.
Under Section 8, Article I of the Texas Constitution, which safeguards the right to free speech and press freedom, Texas will assist those who program or create on the Bitcoin network.
According to the bill, the Chinese government’s 2021 ban on bitcoin mining and trading has prompted a swift exodus of Chinese miners to the United States, notably Texas, where rules are crypto-friendly, and electricity is relatively inexpensive.
According to Foundry USA, the largest mining pool in North America and the fifth-largest internationally, Texas has the fourth-highest Bitcoin hash rate, making up 14% of the nation’s overall hash rate.
What Does The Resolution Cite?
If passed, House Concurrent Resolution 89 would express a certain viewpoint among lawmakers rather than substantially impact Texas laws and regulations. The resolution noted China’s crackdown on cryptocurrency miners, a measure that caused numerous businesses to relocate to Texas.
As part of modifying Texas’ Uniform Commercial Code, cryptocurrencies are recognized under the state’s business laws. Yet, some federal senators have attacked Texas’ ostensibly lax regulatory framework for the potential environmental harm brought on by the energy usage of mining companies.
If passed, House Concurrent Resolution 89 would primarily not affect Texas’ laws and regulations but instead express a particular
Conclusion
In a related event, Florida Governor Ron DeSantis, on March 20, submitted a measure to the state assembly. The measure would forbid using central bank digital currency (CBDCs), both domestic and foreign. In Florida because they could be used to spy on people. Unlike stablecoins and other cryptocurrencies like Bitcoin, CBDCs are issued and managed by central banks.
U.S. President Joe Biden, on March 9, suggested a 30% tax on electricity used in cryptocurrency mining in his budget plan for Fiscal Year 2024 in response to criticism of the excessive energy use by Bitcoin miners.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
