Senator Ted Cruz Declares FLARE Act: 5 Ways the FLARE Act Could Transform Bitcoin Mining Forever!

Bitcoin Mining has long been criticized for its high energy consumption. However, a new legislative proposal seeks to change that narrative. Senator Ted Cruz has introduced the  FLARE Act, a bill aimed at repurposing Flared Gas. It’s a byproduct of oil extraction for mining operations. Supporters argue this could promote cleaner energy use in the crypto space. The proposal comes at a time when crypto regulation remains a heated debate in Washington. Could this bill mark a turning point for sustainable mining or is it merely political positioning?

Key Highlights of the FLARE Act

During a recent press conference, Senator Ted Cruz emphasized that the FLARE Act is designed to turn wasted energy into economic opportunity. He says instead of flaring excess gas into the atmosphere it should be repurposed for productive use such as Bitcoin Mining. The FLARE Act focuses on repurposing excess natural gas that is usually burned off as Flared Gas to power Bitcoin Mining facilities. Key aspects of the bill include:

• Incentivizing oil and gas companies to sell unused gas to Bitcoin miners instead of wasting it.
• Reducing carbon emissions by putting waste energy to productive use.
• Strengthening the U.S. position as a global leader in crypto-friendly energy policies.

Supporters feel that this step is consistent with the demand for crypto regulation. But questions remain about whether energy firms and lawmakers will fully support the initiative.

Industry Reaction & Expert Opinions

The crypto community has responded with mixed reactions. Many Bitcoin advocates praise the bill, highlighting its potential to reduce environmental concerns while supporting the mining industry. A well-known mining firm executive tweeted, “This is exactly the type of energy innovation we need to secure Bitcoin’s future!” Meanwhile, environmental activists argue that incentivizing Bitcoin Mining with Flared Gas could prolong reliance on fossil fuels rather than encourage renewable energy adoption.

In a press release from Cruz’s office, Hailey Miller, Director of Government Relations & Public Policy at the Digital Power Network, praised the new bill, saying that Bitcoin miners are “uniquely positioned to help reduce emissions by harnessing stranded and wasted energy sources.” Miller added that the FLARE Act “ensures that American energy producers have the tools to deploy cutting-edge solutions that make our energy markets more efficient and resilient.”

The new Act would specifically “amend the Internal Revenue Code of 1986 to provide for permanent full expensing for property used to capture gas that would otherwise be flared or vented and to use such gas in value-added products.”

On the regulatory side lawmakers remain divided. Some view the FLARE Act as a step toward responsible crypto regulation, ensuring that Bitcoin operations use energy more efficiently. Others worry that giving incentives to mining companies could lead to an increase in fossil fuel dependency.

The FLARE Act from Sen. @tedcruz allows full expensing for infrastructure that captures and repurposes flared gas into value-added uses—like Bitcoin mining.

MARA supports this legislation. It recognizes Bitcoin mining’s role in reducing emissions and unlocking stranded energy. https://t.co/7GhnGYQqXx

— MARA (@MARAHoldings) April 1, 2025

The Future of Bitcoin Mining: Innovation or Environmental Setback?

Senator Ted Cruz’s FLARE Act introduces a new approach to energy use in Bitcoin mining by repurposing Flared Gas. While the proposal has gained traction among crypto advocates, its long-term impact remains uncertain. Will this bill help integrate mining into mainstream energy policies, or will regulatory roadblocks prevent its success? As debates over crypto regulation continue, the FLARE Act’s progress will be closely watched by both the crypto and energy sectors.