Eight U.S. Blockchain Lobby Groups Unite Ahead of Trump’s Crypto Friendly Regime

Blockchain Associations Unite to Shape US Crypto Policy

As the second inauguration of U.S. President-elect Donald Trump approaches, crypto policy groups are gearing up to make their voices heard.

A coalition of blockchain associations from eight U.S. states has launched the North American Blockchain Association (NABA), a new organization aimed at providing cohesive crypto policy recommendations to the federal government.

Lee Bratcher, president of the Texas Blockchain Council and a member of NABA’s board of directors, explained the origins of the association: “A few years ago, Arry Yu and I led an effort to provide more information and best practices sharing between state associations. NABA is the formalization of that process, in which each state association is independent and retains agency but can act in concert with other states when necessary.”

The member states of NABA include the Texas Blockchain Council, the Alabama Blockchain Alliance, the California Blockchain Advocacy Coalition, the Florida Blockchain Business Association, the Ohio Blockchain Council, the Pennsylvania Blockchain Coalition, the Virginia Blockchain Council, and the Washington Technology Industry Association Cascadia Blockchain Council.

Texas and Miners

With its favorable tax regime, enormous economy, and abundant energy, Texas has become a hotspot for bitcoin mining.

Texas is home to a significant amount of renewable energy projects, which may generate a lot of electricity during periods of low demand. According to Bratcher, this makes Texas an attractive location for bitcoin miners, as they can easily turn their operations on and off to match fluctuating energy availability.

Bratcher explained the energy landscape in Texas: “You had a period where miners were able to get wholesale power prices and lock in power purchase agreements for extremely low amounts of money. Bitcoin miners now consume about 3,100 MW in Texas, enough energy to supply approximately 620,000 homes, according to the Electric Reliability Council of Texas (ERCOT), the state’s grid operator.”

The Texas Blockchain Council receives a significant portion of its funding from bitcoin miners, with more than half of its revenue coming from mining companies like MARA Holdings, Riot Platforms, Core Scientific, Bitmain, and Cipher Mining.

According to Bratcher, the association’s funding is not the only benefit of the mining industry to the state of Texas. He noted that miners are also generating significant economic activity, creating jobs, and investing in local infrastructure.

However, there are concerns about the sustainability of the mining industry in Texas. Bratcher acknowledged that demand for energy from mining operations could outstrip the state’s available supply, potentially leading to a strain on the grid. “I think [ERCOT] will institute rules for how any large loads interconnect to the grid, and that will create some new planning requirements for bitcoin miners and other large loads, including data centers and industrial consumers,” he said.

Trump Administration and Cryptocurrency

As the new administration takes office, the fate of the crypto industry remains uncertain. Bratcher expressed optimism about the Trump administration’s stance on cryptocurrency, saying, “The only thing the bitcoin mining industry is asking from the Trump administration is to keep things fair and consistent and apply the rules the same for everybody. We feel optimistic that some of the things that were unfair about the Biden administration will no longer happen.”

In contrast, the Biden administration was criticized for considering a 30% tax on bitcoin miners and attempting to collect proprietary and confidential information from mining companies. “The Department of Energy similarly attempted to collect proprietary and confidential information from bitcoin miners and make that data available publicly, which led the TBC and Riot Platforms to sue them in federal court,” Bratcher recalled.

Conclusion

As the NABA and other crypto policy groups continue to advocate for the interests of the blockchain industry, the future of cryptocurrency in the United States remains uncertain. However, with the new administration in office, there are opportunities for progress and growth.