Texas has recently introduced new regulations requiring Bitcoin miners to register and disclose key information to the government.
The new ruling, enforced by the Public Utilities Commission of Texas (PUCT), came into effect on November 21 and applies to all Bitcoin miners connected to the Energy Reliability Council of Texas (ERCOT) grid.
Under the regulation, Bitcoin miners must register with PUCT within one working day of connecting to the ERCOT grid, according to CryptoNews.
The registration process requires miners to provide crucial information such as their location, various ownership details, and their overall “electricity demand.”
The registration must be updated annually by March 1.
PUCT’s new initiative aims to ensure the reliability and stability of Texas’s power grid, especially as Bitcoin mining operations, which can be extremely energy-intensive, continue to grow throughout the state.
Texas has become a major hub for cryptocurrency mining.
According to CryptoNews, China’s crackdown on the cryptocurrency industry in 2021 led to a surge in mining activity in America, with many miners relocating to Texas.
PUCT Chairman Thomas Gleeson explained that the new rule is key to managing the increasing power demands of Bitcoin miners, saying, “To meet the electricity needs of all Texans, the PUCT and ERCOT must know the location and power requirements of virtual currency miners.”
Failure to comply with the new registration requirements could result in hefty penalties for crypto industry players.
Bitcoin miners who do not register on time or fail to update their information annually face a “Class A violation,” which can carry fines of up to $25,000 per day.
In related news, after the recent presidential election, Crypto-related stocks saw huge gains across the country, with Bitcoin reaching an all-time high near $87,000 earlier.
Coinbase also surged over 19%, while Robinhood, which supports crypto trading, rose by more than 7%. As previously reported by The Dallas Express, this marks a 35% overall increase the week after Trump was re-elected.
Though President-elect Trump has not directly outlined his upcoming crypto policy, he has generally supported the industry. Trump previously pledged to form a crypto advisory council, dismiss SEC Chairman Gary Gensler, and establish a “strategic national Bitcoin stockpile,” reported Yahoo! Finance.
Coinbase’s Chief Policy Officer, Faryar Shirzad, spoke about his excitement over Trump’s win: “We’re thrilled to have a new president who campaigned on supporting crypto and ensuring the U.S. remains a leader in the technology.”