• Concern regarding Texas Senate Bill (SB) 1751.
• Misinformed, discriminatory, anti-competitive, harmful to the interests of grid stability and bad for consumers.
• SB 1751 concerns “virtual currency” mining and demand response.
Concern Regarding Texas Senate Bill (SB) 1751
Dear Senator Kolkhorst, As native Texans, we are writing to express concern regarding Texas Senate Bill (SB) 1751, which you co-sponsored and which recently passed a Business & Commerce Committee vote on April 5, 2023. This open letter follows a private appeal submitted via your office in March. We write as concerned Texas citizens who are independent and do not represent any company or lobby. From the outside looking in, you seem to be a proud Texan who fights for the rights of all Texans, promoting liberty and freedom consistent with Texan values. SB 1751 is a notable departure from your past track record which is misinformed, discriminatory, anti-competitive, harmful to the interests of grid stability, bad for consumers and a strategic setback for Texas.
Background Information on SB1751
For context, the bill concerns “virtual currency” mining and demand response. It seeks to limit the ability of bitcoin miners to participate in compensatory ERCOT programs which incentivize load reduction to 10% across all bitcoin miners in total. Prior to sponsoring SB 1751 it is unclear whether you engaged in discussions with bitcoin miners to better understand the matter or expressed any opinions on Bitcoin or bitcoin mining at all. It is also unclear whether special interests lobbied for this bill given you do not appear to have previously taken any positions on bitcoin but on the merits alone SB 1751 is problematic.
Misinformation Behind The Bill
Misinformation being that The bill concerns “virtual currency mining as demand response” when really at issue is Bitcoin not “virtual currency” broadly speaking There are no miners of any currency other than Bitcoin that could be of note participating in Demand Response Programs or promoting Grid Reliability Bitcoin is also definitionally not comparable to any other currency and it is not virtual Bitcoin is Bitcoin and if Bitcoin is at the heart of your bill then better understanding before legislating would be beneficial
Bitcoin is a form of money with fixed supply which is global and permissionless There will only ever be 21 million Bitcoins That’s basis its value To recognize this inflation isn’t political Money’s created by Federal Reserve (“Fed”) Fed increased money supply by 8 trillion or 8x since Great Financial Crisis causes inflation destroys savings etc