Kentucky lawmakers are set to pass two new laws aimed at promoting cryptocurrency mining in the US.
The two bills had to go through the state senate (the General Assembly). One is based on tax benefits and, as local media have pointed out, is part of a larger effort to bring technology firms to Kentucky. The other bill applies to the State’s clean-energy subsidies to cryptocurrency miners requiring them to reach up to a $1 Million investment level.
According to vote records, that the Kentucky House of Representatives approved the Electricity Bill on Friday with a 74-19 vote after the Senate was cleared on 3 March. It is not known at this point the difference between the bills in the two houses and whether reconciliation is needed before the final passage.
State Sen. Brandon Smith, who is sponsoring the Senate bill, told his peers that bitcoin miners are looking for inexpensive energy sites, such as Kentucky’s remote coalfields, to power their machines.
Development Increases as US BTC Mining Ecosystem Expands
The Legislature’s bill related to tax went through the House of Representatives on 3 March. 84 votes are waiting for approval and 16 non-voting lawmakers. According to the website of the General Assembly, the bill of tax was “sent to the House on Friday in the Regular Orders of Monday 15 March 2021.” The proposed amendment will put away tax exemption for miners by 2030.
Developments are increasing as the US Bitcoin mining ecosystem continues to expand, attracting considerable interest from institutional investors. Despite a strong demand for hardware, such investors are afraid that there will be stiff competition between the US and China for mining operation hubs.
The mining pool run by the Digital Currency Company Affiliate Foundry opened its doors to the public on Thursday.
Kentucky lawmakers are pushing for new tax cuts to attract further blockchain mining activities to the county, while opponents argue that massive commercial installations waste a lot of resources while generating little permanent employment.