Ted Cruz, a senator from Texas, has proposed the FLARE Act; a bill that would encourage miners to use flared gas to make energy. This bold move could change Bitcoin mining and protect the environment. Big names in crypto, like MARA Holdings and VanEck’s head of digital assets research, support this idea. It could turn lost energy into something useful. Texas is already a major center for Bitcoin mining. The bill aims to make it even more so while lowering emissions and making the state’s energy use more efficient.
THE FLARE Act
The Facilitate Lower Atmospheric Released Emissions (FLARE) Act wants to change the US Internal Revenue Code to make it easier for businesses, like crypto miners, to use flared or emitted gas. Miners can now turn this energy source into products that add value instead of throwing it away, making the mining ecosystem more sustainable and cost-effective. If the bill passes it will start to affect properties in 2026. This is a big step towards lowering carbon emissions while keeping the Bitcoin mining industry’s fast growth going.
Crypto Leaders Support Bill
Key players in the industry, like MARA Holdings, have backed the FLARE Act. They pointed out that it could “unlock stranded energy” and make mining more environmentally friendly. A mining advocacy group called Digital Power Network has also backed the bill because they know how important it is to balance environmental responsibility with business growth. Riot Platforms and CleanSpark are two other big mining companies already working in Texas.
FLARE Act political and regulatory hurdles
The FLARE Act makes a strong case for long-term Bitcoin mining, but its future in the legislature is still unclear. As the US Congress talks about other crypto-related bills, like stablecoin rules and market structure changes, it’s still unclear how the FLARE Act will fit with these other bills. Some parts of the bill stop companies owned by China, Iran, North Korea, or Russia from taking advantage of these benefits.
Conclusion
The FLARE Act is a groundbreaking way to combine new crypto ideas with care for the earth. It could change the future of Bitcoin mining and help stop people from using too much energy.