US Senator Ted Cruz from Texas has introduced a bill aimed at utilizing energy resource extraction waste for mining the first cryptocurrency.
My legislation, the FLARE Act, incentivizes entrepreneurs and crypto miners to utilize natural gas that would otherwise be stranded. https://t.co/fvb1nog3ix pic.twitter.com/8uCWtyOY29
— Senator Ted Cruz (@SenTedCruz) April 1, 2025
The “Facilitating Large-scale Access to Redundant Energy” (FLARE) Act proposed by the politician provides for the utilization of so-called hard-to-recover natural gas for mining. This category includes not only economically unviable deposits but also associated gas, which is flared at oil fields due to the unprofitability of commercialization.
The senator proposes to fully compensate the costs of equipment for Bitcoin miners who organize electricity production from these sources. Cruz believes this will decentralize generation and enhance the resilience of the power grid during peak demand or extreme weather conditions.
“This bill leverages Texas’s vast energy potential, strengthens our position as a home for the Bitcoin industry, and benefits the environment,” the politician stated.
Cruz confirmed his commitment to “transforming the state into the number one place for mining.” The FLARE Act encourages entrepreneurs to use natural gas that would otherwise be wasted, he added.
The bill has received support from the industry association Digital Power Network. Haley Miller, Director of Government and Public Policy Relations, noted that the document opens up opportunities for “energy innovation in the US.”
“By fully compensating the costs of infrastructure that captures and uses flared gas, the bill creates strong incentives for industries, including Bitcoin mining, to productively use otherwise wasted energy, strengthening the grid and stimulating economic growth,” she emphasized.
In Texas, two students founded Giga Energy Solutions to mine cryptocurrency using associated gas energy back in 2019.
One of the most prominent players in the segment is Crusoe Energy Systems from Denver, Colorado. After acquiring assets from competitor Great American Mining in 2022, the firm expanded its operations to six states.
In 2024, environmental organization GreenpeaceUSA quietly concluded its “Change the Code” campaign aimed at combating pollution from cryptocurrency mining.