Senator Ted Cruz Acquires 3 Bitcoin ASIC Miners, Begins ‘Hashing’ in Texas

June 2, 2024 Bitcoin.com

Alleged $300,000,000 Crypto Ponzi Scheme in Texas Targeted by SEC As 17 Individuals Face Charges

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Coinbase Reveals Texas Voters Believe Crypto Is a Relevant Topic for the Next Elections

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Lejilex and Crypto Freedom Alliance of Texas Sue SEC for Unlawfully Targeting the Digital Asset Industry

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Texas Electric Utility Courts Unnamed Crypto Miners With Five-Year Deals

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Nic Carter, other pro-Bitcoiners fight climate impact narrative in new paper

November 28, 2023 Coin Telegraph

Bitcoin mining

A newly published working paper on Bitcoin mining has worked to counter claims from anti-crypto politicians that Bitcoin is melting the planet.

Bitcoin mining is a “critical tool” for clean energy and balancing the grid, according to a new working paper penned by Bitcoin advocates and the former president of ERCOT, the operator of Texas’ electrical grid.

The Nov. 22 paper titled “Leveraging Bitcoin Miners as Flexible Load Resources for Power System Stability and Efficiency” argued that Bitcoin mining’s inherent interruptibility and swift load response capabilities could enhance grid flexibility to better integrate variable renewable energy sources.

Authors of the working paper included Castle Island Ventures partner Nic Carter, Satoshi Action Fund CEO Dennis Porter and Science Advisor Murray Rudd, former ERCOT (Electric Reliability Council of Texas) President and CEO Brad Jones — who recently passed away, along with Executive vice president of power at Houston-based tech company Lancium, Shaun Connell.

BREAKING: New working paper co-authored by former ERCOT & NYISO CEO, highlights #Bitcoin mining as a critical tool for clean energy and balancing the grid. pic.twitter.com/86pXuQ1XxL
— Dennis Porter (@Dennis_Porter_) November 27, 2023

The paper provides case studies of Bitcoin miners participating in demand response programs and providing grid services in Texas, illustrating their unique capabilities as flexible and controllable loads.

The researchers concluded that this suggests that Bitcoin miners can play an important role in demand response, “thereby bolstering both the technical and economic stability of the grid.”

Some observers on X (Twitter) pointed out that the findings of the paper contrast arguments made by anti-crypto politicians who have blamed Bitcoin miners for high energy usage and loads on grids.

In October 2022, Senator Warren and six other Democrats pressed ERCOT for information detailing how much electricity Bitcoin mining operations have consumed. She has also previously attacked New York mining firm Greenidge Generation, claiming at the time that a “crackdown on environmentally wasteful cryptocurrencies” would help fight the climate crisis.

Bitcoin mining pioneer Marshall Long tagged Senator Warren in a retweet of the paper adding “The people who RUN the grids say you’re wrong,”

Aye @SenWarren where u at

The people who RUN the grids say you’re wrong

Oops https://t.co/rcwoivLA9q
— Marshall Long (@OGBTC) November 27, 2023

The researchers concluded that the comprehensive impact of Bitcoin on global energy demand and climate change “remains complex,” but emerging data suggests “its effects might be more nuanced than conventionally believed.”

A recently published Cornell University study demonstrated how wind and solar projects can profit from Bitcoin mining during their pre-commercial development phases.

In July, Cointelegraph reported that Bitcoin mining was becoming more sustainable thanks to innovations such as hydro-cooling farms and associated petroleum gas. Moreover, in September it was reported that Bitcoin clean energy usage had exceeded 50%.

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Political donations aplenty: Event recap for North American Blockchain Summit

November 20, 2023 Coin Telegraph

Business

Republican presidential candidate Vivek Ramaswamy, Independent presidential candidate Robert F. Kennedy, Jr. and many U.S. lawmakers were in attendance at NABS 2023.

Once branded for a Texas-specific audience, the North American Blockchain Summit (NABS) shook things up in 2023 — changing its location and name as many United States lawmakers prepared for an election season.

Hundreds of crypto and blockchain enthusiasts gathered in Fort Worth, Texas from Nov. 15-17 to network, discuss mining, and listen to politicians and industry leaders talk about developments in policy and regulation affecting the space. Among the headliners of the event were longshot Republican presidential candidate Vivek Ramaswamy, Independent presidential candidate Robert F. Kennedy, Jr. and current lawmakers including Wyoming Senator Cynthia Lummis and Texas Senator Ted Cruz.

*North American Blockchain Summit on Nov. 16. Source: Cointelegraph*

Patriotism and U.S.-centered interests seemed to be the theme at NABS in 2023. Daily events kicked off with the playing of the U.S. national anthem on trumpet as a digital American flag waved on screen, and doors were open to exclusive fundraisers with many speakers in exchange for a sizable donation. In RFK Jr.’s case, the recommended donation started at $1,000; for Ramaswamy, $3,300 for an attendee; for Lummis and Cruz, $250.

Such a fun panel at @NABSummit chatting about the latest on crypto legislation, the SEC, and the 2024 election. Thanks @srolondon @WarrenDavidson @CoryGardner @SWBauguess for a substantive discussion! pic.twitter.com/RHuIgtCthM
— Ron Hammond (@RonwHammond) November 17, 2023

In both 2021 and 2022, the Texas Blockchain Council — one of the main organizers for the conference — hadn’t hosted the event prior to a major U.S. election. Attendance appeared to be low in November 2022 amid a crypto market downtown and the collapse of the FTX exchange. In 2023, the event included QR codes linked to campaign websites scattered across lounge areas and calls to donate to crypto-friendly politicians prior to panels.

Speaking to Cointelegraph on Nov. 16, RFK Jr.’s campaign message seemed to be focused on taking Americans’ personal finances out of the control of centralized institutions and the U.S. government. He also commented on discussions in Congress about whether members should be allowed to hold certain assets like stocks and crypto, in contrast to average retail investors.

“I own crypto, I own Bitcoin, and if I get into office I’m going to do things that make Bitcoin more valuable,” said the presidential candidate. “I’m not doing it to benefit my personal portfolio but I think it’s important for the public to know that I have that conflict and that I should have to disclose that conflict at the very least.”

Once considered by many to be a longshot candidate running to win the Democratic nomination for U.S. President, RFK Jr.’s numbers in a Nov. 1 Quinnipiac poll showed the candidate at 22% in a three-way race against former President Donald Trump and current President Joe Biden. In interviews and on the campaign trail, Kennedy has repeatedly pushed misleading or false information on vaccines. He has many supporters among crypto users amid reports he gifted his children Bitcoin (BTC) and his views on financial freedom.

The NABS conference came roughly one year before the United States is set to vote for many Senators, members of the House of Representatives, local lawmakers, and the U.S. Presidency. Both chambers could be flipped or remain in the hands of the Republican or Democratic parties depending on the outcome of the election, which could affect how Congress handles digital asset legislation moving forward into 2025.

Magazine: GOP crypto maxis almost as bad as Dems' 'anti-crypto army'

Failed ‘$175M’ real estate token raise draws ire of Texas regulators

November 16, 2023 Coin Telegraph

<div>Failed '5M' real estate token raise draws ire of Texas regulators</div>

Coin Telegraph

"GS Partners promoted the products through a multilevel marketing scheme paying lavish commissions," regulators say.

The Texas State Securities Board has accused a network of companies under the "GS" brand and operating from Germany of fraudulent activities "tied to digital assets, investments in a staking pool in a proprietary metaverse." The network of companies is controlled by Josip Dortmund Heit.

As described by regulators on November 16, respondents GS Partners, GS Smart Finance and GS Wealth allegedly held three rounds of metaverse property sales beginning September 2021. At the time, investors were informed that could purchase XLT Vouchers, or BNB Chain tokens that represented ownership of one square inch of a unit in the company's G999 Tower metaverse, at 9.63 Tether (USDT) per voucher. However, the token rapidly lost its value, to less than 0.0000049 USDT apiece on decentralized exchange PancakeSwap, after the respondents failed to reach its $175 million raise target for the offering.

"Respondents have not been registered with the Securities Commissioner as dealers or agents at any time material hereto."

Regulators allege that other investment products created by GSB, such as its Lydian World metaverse tokens, gold tokens, G999 coin, and Elemental Certificates, also constituted unregistered security offerings. The Texas State Securities Board has filed an emergency enforcement action for the GSB group of companies to cease and desist from such activities in the state.

On August 15, the Ontario Securities Commission issued a warning that GS Partners was not registered to do business in the Canadian province of Ontario. Previous warnings regarding the firm were also published by securities regulators in the Canadian provinces of Saskatchewan, British Columbia, Alberta, and Quebec.

Celsius and Core Scientific propose $14M settlement for litigation

September 15, 2023 Coin Telegraph

Celsius

Though subject to court approval, the two firms have agreed on a settlement in which Celsius will purchase a $45-million mining data center from Core Scientific for $14 million.

Crypto mining firm Core Scientific has announced an agreement with lending company Celsius Network to settle a legal battle which had been ongoing for months.

In a Sept. 15 announcement, Core Scientific said it had agreed to sell a Bitcoin (BTC) mining data center to Celsius in exchange for $14 million in cash to settle “all existing litigation”. The value of the Texas-based data center was roughly $45 million, and the deal will need court approval before being finalized.

The conflict between the two firms largely started in October 2022, when Core Scientific alleged Celsius had failed to pay its bills, while Celsius claimed the mining firm had not been deploying rigs as required under their contract. Both firms separately filed for Chapter 11 bankruptcy protection in the United States: Core Scientific in Texas in December 2022 and Celsius in New York in July 2022.

*Sept. 14 court filing on the proposed settlement between Core Scientific and Celsius. Source: Stretto*

The Texas data center, which will likely go to Celsius’ mining arm if the deal is approved, was reportedly non-operational but capable of supplying 215 megawatts to BTC rigs. According to Celsius CEO Chris Ferrero, crypto mining firm US Bitcoin played a “key supporting role in structuring and executing the transaction” in addition to being a party to a winning bid for Celsius’ assets in bankruptcy proceedings.

The litigation between the two firms is separate from the criminal charges against former Celsius CEO Mashinsky and former chief revenue officer Roni Cohen-Pavon. Mashinsky was arrested in July and has pleaded not guilty to charges related to fraud and manipulating the market. Cohen-Pavon pleaded guilty to 4 charges on Sept. 13 and will be sentenced in December.

Magazine: Get your money back: The weird world of crypto litigation

Crypto companies form Texas blockchain group to advocate for clear regulations

September 11, 2023 Coin Telegraph

Coin Telegraph

a16z crypto, Coinbase, Ledger, Bain Capital Crypto, Blockchain Capital, and Paradigm joined to advocate for clear regulations.

A group of crypto and blockchain firms joined together to create a Texas crypto advocacy group, according to a Sept. 11 announcement. The group is called “Crypto Freedom Alliance of Texas,” and is founded by a16z crypto, Coinbase, Ledger, Bain Capital Crypto, Blockchain Capital, and Paradigm. The group is promoting “the development of coherent and predictable regulations for digital assets in Texas.”

#Crypto Freedom Alliance of Texas Launches to Support Clear Digital ... - Business Wire https://t.co/kn9LdN5zj1 pic.twitter.com/VzgqpEc0uC
— Stock Market News (@Stock_Market_Pr) September 11, 2023

To further its goals, the Crypto Freedom Alliance will foster educational initiatives that will target government officials, corporations, non-profits, and other organizations in an effort to highlight the value of Web3 in the state of Texas, the announcement stated.

Cointelegraph met up with a16z crypto’s global head of policy, Brian Quintenz, at the Permissionless II conference in Austin to get further details on the new group. According to Quintenz, Texas is uniquely suited to become a haven for Web3 developers, but this necessitates forming an advocacy group to tackle issues in the state.

For example, Quintenz argued that decentralized autonomous organizations (DAOs) often need legal jurisdiction to operate. Texas is an attractive state, thanks to its adoption of the Uniform Code of Unincorporated Associations.

“Modifying the unincorporated association law that applies more generally to limited liability types of entities is a state issue, and there are only a few states that have adopted the Uniform Code of Unincorporated Associations […] Texas is one of them,” Quintenz stated.

However, small changes would need to be made to this code to allow DAOs to be recognized as legal entities:

“One of the things we continue to try to do is to advocate and educate around creating a legal entity for DAOs that makes some changes to the unincorporated association framework but makes it more restrictive. We don’t want to just open it up to anybody and say ‘Oh, I’m a DAO.’ You can only really qualify for this if you’re a decentralized kind of organization.”

In addition to advocating for changes to the unincorporated association laws, Quintenz said the group would also push for crypto-friendly tax laws, bank charter laws and bank regulations. He considered Wyoming’s bank charter laws to be “a positive example” of what can be accomplished by crypto-friendly legislatures.

Texas is a popular hub for crypto mining in the U.S. Genesis Digital Assets bases most of its CPUs in Texas. On July 3, crypto mining firm Hut8 also moved 6,400 mining computers to the state.

Texas

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