Texas Senator Ted Cruz has recently proposed a bill that aims to incentivize crypto miners to use flared gas for energy generation in the state. This move could potentially make Texas the top destination for Bitcoin mining. The bill, called the Facilitate Lower Atmospheric Released Emissions (FLARE) Act, was introduced by Cruz on April 1st and has already gained support from mining advocacy group Digital Power Network and Bitcoin miner MARA Holdings.

The FLARE Act aims to amend the US Internal Revenue Code to encourage market participants, including digital asset miners, to capture and use gas that would otherwise be flared or vented. This would not only reduce emissions but also unlock stranded energy. If passed, the legislation would take effect in 2026.

In addition to the energy incentives, the bill also prohibits entities owned by China, Iran, North Korea, or Russia from recovering their costs in the same manner. This could potentially impact many US miners operating in Texas, including MARA, Riot Platforms, and CleanSpark.

While the bill has gained support from some in the crypto community, it is unclear if it will be a legislative priority in the Senate as Congress is currently considering bills to regulate stablecoins and establish a market structure for digital assets in the US. Some lawmakers have also proposed legislation to potentially ban a US central bank digital currency and remove regulatory obstacles for Americans to invest in crypto for their retirement plans.

Senator Cruz, who has been serving since 2013, has previously aligned with mainstream figures in his party, including US President Donald Trump. He recently introduced a bill to prohibit the Federal Reserve from issuing a central bank digital currency and disclosed personally holding up to $100,000 in Bitcoin by August 2024.

As the crypto industry continues to gain mainstream attention and support, it is likely that more bills and legislation related to digital assets will be introduced in the US Congress. It will be interesting to see how these developments will shape the future of crypto in the country.