Texas Senator Ted Cruz has put forward a bill designed to encourage cryptocurrency miners to harness flared gas for energy production within the state.
In a notice dated April 1, Cruz announced that he introduced the Facilitate Lower Atmospheric Released Emissions, or FLARE, Act in the Senate, with the goal of positioning Texas as the leading destination for Bitcoin mining. The measure has the backing of the mining advocacy group Digital Power Network, and Bitcoin miner MARA Holdings expressed its support for the legislation on social media, asserting that it could help cut emissions and “unlock stranded energy.”
Draft of FLARE Act from April 1.
The proposed FLARE Act aims to modify the US Internal Revenue Code to provide incentives for participants in the market—particularly digital asset miners—to “capture gas that would otherwise be flared or vented and to use such gas in value-added products.” Should this legislation be enacted, it will apply to facilities that begin operations in 2026.
Related: Bitcoin mining utilizing coal energy has decreased by 43% since 2011 — Report
Cruz, a Republican who has been in office since 2013, has occasionally championed legislation that aligns with prominent members of his party, including former US President Donald Trump. In March, he proposed a bill to prevent the Federal Reserve from launching a central bank digital currency (CBDC) and revealed that he personally held up to $100,000 in Bitcoin as of August 2024.
Progress of Crypto Legislation in Congress
Beyond the energy incentives outlined in this new bill, Cruz noted that the proposed language “bars entities owned by China, Iran, North Korea, or Russia” operating in Texas from recouping their costs in the same way. Numerous US miners, including MARA, Riot Platforms, and CleanSpark, conduct their operations in the state.
The legislative priority of Cruz’s bill remains uncertain as Congress takes up measures to regulate stablecoins and define a market structure for digital assets in the US. Meanwhile, some lawmakers have introduced proposals that could ban a US CBDC and eliminate regulatory barriers to allow Americans to invest in cryptocurrencies within their retirement plans.
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