Bitcoin miners in Texas are now required to register and report their power demands to the state’s utility regulator, thanks to a new rule from the Public Utilities Commission of Texas.
This move wants to help manage the power grid as more mining operations come online.
New rule
On November 21, the comission passed a regulation that mandates Bitcoin miners using the Energy Reliability Council of Texas, aka ERCOT grid to share key details about their facilities. This includes their location, ownership information, and electricity needs.
Miners have just one business day after connecting to the ERCOT grid to register, and they must renew this registration every year by March 1.
ERCOT manages about 90% of Texas’s electricity load, and PUCT Chairman Thomas Gleeson shared that understanding the power needs of virtual currency miners is quite important for maintaining grid reliability for all Texans.
New industry
After China cracked down on crypto mining in 2021, many miners relocated to Texas, drawn by the state’s friendly regulations and abundant energy resources.
But now, with this influx of mining operations, regulators are keen to ensure that the power grid can handle the increased demand.
If miners fail to register under the new rule, they could face serious penalties, including fines of up to $25,000 per day.
Bitcoin in Texas
Texas Senator Ted Cruz has big plans for the state. In an interview with Fox Business, he declared his intention to make Texas a “Bitcoin oasis.”
Cruz believes that the biggest threat to Bitcoin comes from the federal government and politicians who don’t understand or appreciate digital assets.
I am one of the leading defenders of Bitcoin and cryptocurrency in the U.S. Senate.
I want Texas to be an oasis for Bitcoin, and we are seeing many companies come to Texas to create new jobs in the cryptocurrency industry. pic.twitter.com/ayVzxQIIi9
— Ted Cruz (@tedcruz) November 23, 2024
“I want it out of government control. I don’t want federal bureaucrats having control over it.”
At a blockchain summit, Cruz also mentioned that discussions are underway among Texas lawmakers about strategic Bitcoin reserve legislation.
He believes that following President-elect Donald Trump’s election victory, there’s a favorable regulatory environment on the horizon for cryptocurrencies.
As Bitcoin mining operations continue to grow in Texas, balancing energy demands with grid stability is becoming increasingly important.
The new reporting requirements want to keep everyone informed and ensure that the state can handle its rising power needs without compromising service, and also, supporting the mining industry.
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