Oklahoma To Introduce Crypto Mining Friendly Bill This Year

Key Insights:

• The bill has been titled “Commercial Digital Asset Mining Act of 2022.”
• Oklahoma intends on incentivizing companies to mine in the state.
• This will be the second state to offer miner-friendly policies.

In the Senate yesterday, Republican Senator John Montgomery unveiled his bill, which aims at making crypto mining a much more attractive business opportunity in the state.

Called the  “Commercial Digital Asset Mining Act of 2022”, the bill will enable the crypto mining industry to further flourish in the state.

Oklahoma To Be Mining Friendly

The bill discussed a bunch of norms pertaining to how the process would work but at the core of it is a simple strategy – incentives.

With incentives in the form of reducing tax burdens and incentives to establish Oklahoma as the crypto mining hub, the state is taking a positive approach on this path. 

However, even though the final details are yet to be revealed, Senator Montgomery clarified that the incentives would be capped and would be worth no more than $5 million.

But it is not just Oklahoma that has its eyes on the title of the most mining-friendly state. Georgia is in the running, too, and FXEmpire recently reported on the offering from the Peach State.

Georgia is considered to be a tax haven when it comes to crypto mining, given that the state government subject no tax on individual miners.

Although there is a 15% IT tax and an 18% VAT for corporate miners, it still provides lucrative opportunities when it comes to mining.

Thus it’ll be an interesting bout of competition to become the preferred state by crypto miners.

But How Are the Miners?

Over the last couple of weeks, the sentiments have been mixed as the total Hash Rate of Bitcoin was at its peak in January but plunged soon after that.

As it begins recovering now, the network could see the emergence of more miners, which would, in return, further fuel the Hash Rate. 

But a rise in miners could result in slippage in miners’ balance which has already been swindling since 2020.

Ever since the beginning of the pandemic and the May crash, the total holdings of these miners have reduced from over 3 Million BTC to 2.5 million BTC. This translates to about $23.2 billion worth of BTC being sold.

The reason could be many ranging from profit-booking to preventing losses to also paying for the resources needed in mining. But the point stands that miners’ aren’t at their best as they used to be before.