Forbes India 15th Anniversary Special

Montana Governor approves crypto bill beneficial for the industry

The crypto bill focuses on introducing certain amendments to present laws that are discriminatory to crypto mining

Shashank Bhardwaj
Published: May 5, 2023 02:27:55 PM IST
Updated: May 5, 2023 02:33:19 PM IST

Montana Governor approves crypto bill beneficial for the industryImage: Shutterstock

Hailed as a positive step for crypto mining in Montana, the latest crypto bill to be given the go-ahead by Governor Greg Gianforte would help ease regulatory processes for crypto mining in the state. The crypto bill is specifically targeted at preventing local governments from introducing prohibitory actions for crypto mining.

The crypto bill approved by the Montana Governor states two aspects where miners would be protected; prevention of biased electrical rates for mining firms and prevention of taxation of crypto used in payments. 

Thereby, the crypto bill effectively ensures rights for mining firms in the state of Montana, which could act as an encouraging step for the industry.

Partial goals of the bill would include the protection of the mining firms from new laws being discussed in other states, which could be discriminatory for crypto miners.

On the matter of taxation, the crypto bill officially states, “Digital assets used as a method of payment may not be subject to any additional tax, withholding, assessment, or charge by the state or a local government that is based solely on the use of the digital asset as the method of payment.”

It also prevents any entity in the state from preventing any miners from conducting mining activities from their homes.

A similar law was approved by the Governor of Arkansas earlier, though the official law hasn’t been uploaded to the legislature’s website yet. The crypto industry welcomed Monatana’s initiative, with some praising the efforts at the local and state level for crypto adoption, even as the Federal government’s move on crypto regulation hasn’t moved as quickly as intended.

                                                                                                                                                                       Another encouraging bill for mining firms gathered pace in Mississippi but could not proceed further. Currently, the US government would impose a 30% tax on crypto miners as a policy decision for the budget of the financial year 2024.

The local crypto bills implemented by states like Montana and Arkansas could significantly help the sector.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash