Texas Senator Proposes FLARE Act to Revolutionize Bitcoin Mining

Texas Senator Ted Cruz has unveiled the Facilitate Lower Atmospheric Released Emissions (FLARE) Act, a bold legislative proposal aimed at tackling environmental challenges while advancing cryptocurrency mining strategies. The bill, introduced on April 1, seeks to repurpose flared gas – a byproduct of natural gas extraction – into energy for high-demand activities like Bitcoin mining. This initiative positions Texas as a leader in environmentally conscious and technologically advanced mining practices.

Turning Waste into Opportunity

Flared gas, often burned off due to insufficient infrastructure, contributes significantly to greenhouse gas emissions and wasted energy. The FLARE Act proposes amending the U.S. Internal Revenue Code to incentivize capturing and repurposing this resource. Starting in 2026, financial rewards would be offered to projects that convert flared or vented gas into “value-added products,” benefiting industries like digital asset mining.

Crypto Industry Endorsements

The bill has garnered swift support from the cryptocurrency sector. Advocacy group Digital Power Network and Bitcoin mining giant MARA Holdings have publicly endorsed the legislation. MARA highlighted its dual benefits: reducing emissions and unlocking “stranded energy”—unused resources hindered by infrastructure limitations. This collaboration underscores the growing alignment between environmental policy and crypto innovation.

Institutional Backing and Broader Implications

Matthew Sigel, head of digital assets research at VanEck, also supports the FLARE Act, signaling increased interest from institutional investors. Cruz’s legislative history reflects his alignment with Republican priorities, including his recent opposition to central bank digital currencies (CBDCs). His personal investment in Bitcoin – up to $100,000 as of August 2024 – further underscores his commitment to the asset class.

Texas has become a hotspot for crypto mining, thanks to deregulated power markets and political openness. Major players like Riot Platforms and CleanSpark operate within the state, leveraging its favorable conditions for growth.

Geopolitical Safeguards

The FLARE Act introduces strict limitations on foreign entities from adversarial nations—including China, Iran, North Korea, and Russia, preventing them from benefiting from cost recovery in Texas-based operations. This provision reflects national security concerns tied to critical infrastructure sectors like energy and digital assets.

Navigating Complex Crypto Regulations

While Cruz pushes forward with the FLARE Act, Congress continues debating broader cryptocurrency regulations. Proposals include frameworks for crypto markets, stablecoin oversight, and CBDC bans. Discussions also focus on easing barriers for Americans integrating cryptocurrencies into retirement portfolios.

A Model for Sustainable Innovation

The FLARE Act represents a unique intersection of energy efficiency, economic policy, and technological advancement. If successful, it could redefine Bitcoin mining practices in Texas while offering a scalable model for repurposing industrial byproducts nationwide. By aligning environmental responsibility with innovation, the bill may set a precedent for future collaborations between policy and technology sectors.