Senator Ted Cruz (R) has introduced the Facilitating Lower Atmospheric Released Emissions (FLARE) Act, which aims to repurpose flared natural gas for Bitcoin mining and other digital asset operations.
The bill seeks to provide tax incentives for companies that capture and use natural gas emitted during oil drilling, rather than burning it off. Under the bill, companies would benefit from full expensing, allowing them to immediately deduct the cost of qualified infrastructure instead of spreading it over multiple years.
Senator Cruz called the bill a win-win for both the economy and the environment, emphasizing its role in reducing emissions while supporting innovation in the energy sector.
“I am committed to making Texas the number one place for Bitcoin mining,” Senator Cruz said in a statement. “The FLARE Act incentivizes entrepreneurs and crypto miners to use natural gas that would otherwise be stranded. This bill takes advantage of Texas’s vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment.”
The bill, which has been referred to the Senate Finance Committee, has been widely praised by industry leaders.
Matthew Sigel, head of digital assets research at VanEck, welcomed the proposal, stating, “Great to see Senator Ted Cruz supporting Bitcoin mining as a solution to reduce emissions & unlock stranded energy.”
MARA Holdings, a major Bitcoin mining firm, similarly expressed support, highlighting the benefits of full expensing for flare gas infrastructure. “This legislation recognizes Bitcoin mining’s role in reducing emissions and unlocking stranded energy,” the company said in a statement.
The Digital Power Network, a coalition of mining and energy firms, endorsed the bill as a major step forward. Hailey Miller, the coalition’s director of government relations, called it “a monumental step forward for the U.S. energy sector and the digital asset industry.”
