Ted Cruz Pushes Bill to Turn Waste Gas Into Bitcoin Mining Power

Senator Ted Cruz has put forward the Facilitating Lower Atmospheric Released Emissions (FLARE) Act, legislation aimed at motivating cryptocurrency miners to utilize surplus natural gas that would typically be discarded. The law seeks to offer tax benefits to firms that collect and repurpose flared natural gas, a byproduct of oil drilling usually released into the air.

Under the FLARE Act, companies that invest in systems to reduce flaring and venting would qualify for complete tax deductions. These systems would transform excess natural gas into valuable energy sources such as electricity, liquid fuels, or processing power for digital asset mining.

Cruz emphasized the bill’s possible effects on the economy and the environment, especially in Texas. “This is beneficial for everyone: we minimize waste, generate economic prospects, and bolster Texas as a leader in Bitcoin mining,” he remarked. He encouraged his fellow legislators to support the initiative, highlighting its significance in energy advancement and environmental stewardship.

Restrictions on Foreign Entities and Environmental Benefits

The legislation contains specific measures which stop foreign entities of concern from obtaining tax benefits. Victims of Chinese, Russian, Iranian and North Korean influence would receive no incentives under this restriction. This limitation in the bill targets U.S.-allied businesses to ensure that tax incentives stay within American domestic energy independence boundaries.

The initiative supports harmful emission reduction through waste gas repurposing and simultaneously strengthens both energy capacity and delivery networks. The proponents advocate this approach because it enhances the stability of the grid system including times of intense weather and high demand usage.

Industry Support and Potential Economic Impact

Several industry players have expressed support for the FLARE Act. Bitcoin mining firm MARA Holdings stated in a post on X that the bill could “reduce emissions and unlock stranded energy” in Texas and beyond.

Great to see @SenTedCruz supporting Bitcoin mining as a solution to reduce emissions & unlock stranded energy.
The FLARE Act could pave the way for using flared gas more efficiently and sustainably ⚡️🔌 https://t.co/0c6t8SRRGR

— matthew sigel, recovering CFA (@matthew_sigel) April 1, 2025

MARA has already implemented a 25-megawatt micro data center operation in Texas and North Dakota, using excess gas to generate electricity for data processing. If the bill passes, similar infrastructure projects would qualify for permanent full expensing, allowing companies to deduct the entire cost of implementation from their taxable income starting in 2026.

Bitcoin Mining and Energy Innovation

Cruz has previously expressed support for using excess energy from oil and gas operations for Bitcoin mining. At the 2021 Texas Blockchain Summit, he suggested that rather than flaring natural gas, it should be put to productive use. “Use that power to mine Bitcoin. Part of the beauty of that is the instant you’re doing it, you’re helping the environment enormously,” he said at the time.

The FLARE Act has sparked discussion about the intersection of cryptocurrency mining and energy sustainability. As the bill moves through legislative review, its potential impact on both the mining industry and environmental efforts will be closely watched.