In an effort to capitalize on Texas’s vast energy resources, Senator Ted Cruz has introduced the Facilitate Lower Atmospheric Released Emissions, or FLARE, Act in the U.S. Senate. This legislation aims to encourage cryptocurrency miners to utilize flared gas for energy generation, positioning Texas as the leading hub for Bitcoin mining.
The FLARE Act was formally announced by Cruz on April 1, asserting that Texas could become the premier site for Bitcoin mining operations. This initiative has garnered the support of MARA Holdings, a notable Bitcoin mining company, which has publicly endorsed the bill on social media, emphasizing its potential to reduce greenhouse gas emissions and harness currently stranded energy resources.
The proposed legislation seeks to amend the U.S. Internal Revenue Code, creating incentives for market players, including digital asset miners, to capture gas that would otherwise be wasted through flaring or venting. If the FLARE Act is signed into law, it would take effect for properties that begin operations in 2026.
Senator Cruz, who has a long-standing career in the Senate since 2013, has previously aligned himself with key conservative figures in his proposals, including initiatives that have drawn the attention of former U.S. President Donald Trump. Additionally, Cruz has introduced bills aimed at prohibiting the Federal Reserve from implementing a central bank digital currency and has disclosed holding up to $100,000 in Bitcoin as of August 2024.
The FLARE Act not only promotes energy incentives but also contains provisions that prevent entities from nations like China, Iran, North Korea, or Russia from benefiting in the same way. This aspect of the bill addresses national security concerns while further supporting the U.S.-based mining industry, which includes companies like MARA, Riot Platforms, and CleanSpark, all of which have a significant presence in Texas.
This developing story emphasizes the intersection of energy policy and the cryptocurrency industry, highlighting the importance of legislative measures in supporting sustainable energy practices while fostering technological innovation.
Related: Bitcoin mining using coal energy down 43% since 2011 – Report
This is a developing story, and further information will be added as it becomes available.
