Bill number 178 aims to categorize digital assets (cryptocurrencies, stable coins, and NFTs) as “personal property.”
SB 178
n February 2022, the Montana Senate approved State Bill 178, introduced by Republican state Senator Daniel Zolnikov in November 2021. The bill aims to revise and establish laws around mining and cryptocurrencies.
The bill guarantees every citizen the right to mine cryptocurrency at home, while every company has the right to establish a commercial mining operation. The proposed law also prohibits the government from imposing discriminatory utility rates on miners or restricting mining operations through zoning or environmental laws. Discriminatory rates refer to charges significantly higher than what other industrial users of electricity pay in the same geographic areas.
Montana's House of Representatives has passed a bill classifying digital assets as "personal property" and fostering local cryptocurrency mining operations. The legislation prohibits taxation on crypto transactions when used as a means of payment and also provides benefits to crypto mining companies operating within the state. The proposed law aims to ban discriminatory energy rates charged to crypto miners and provide legal certainty for the digital asset mining industry. The bill requires the signature of Governor Greg Gianforte to become official.
The bill, known as bill number 178, passed the third reading with 64 votes in favor and 35 against, after previously receiving approval from the Senate. The sponsor of the legislation, Senator Daniel Zolnikov, and Governor Greg Gianforte, both belong to the Republican Party.
Texas, Arizona, and Florida are some US states that are also adopting a friendly stance towards cryptocurrencies. Texas, with its vast area, favorable climate conditions, and relatively low electricity costs, has emerged as a crypto mining hub. Chinese miners are among those who have eyed Texas as their next possible destination following the total ban on all crypto operations in China.
Arizona's State Senator Wendy Rogers has proposed a bill to make bitcoin an official payment method, aiming to turn the Grand Canyon state into a "crypto-friendly" territory. Florida Governor Rob DeSantis has suggested enabling businesses to pay their state fees in digital assets instead of fiat. He also presented himself as an opponent of the creation of a digital dollar, as he believes it could act as a surveillance tool and suggested its total prohibition in Florida.
In conclusion, Montana's bill treats digital assets as personal property and provides benefits to local crypto mining companies. Other US states, including Texas, Arizona, and Florida, are adopting a friendly stance towards cryptocurrencies, which could contribute to the growth and development of the industry.
