Ted Cruz Introduces Bill to Power Bitcoin Mining with Flared Gas

Texas Senator Ted Cruz introduced a new bill aimed at encouraging crypto miners to utilize flared gas as an energy source. The legislation, titled the Facilitate Lower Atmospheric Released Emissions (FLARE) Act, was announced on April 1. The bill seeks to amend the US Internal Revenue Code to provide incentives for companies to capture gas that would otherwise be wasted through flaring or venting, and instead use it for productive purposes like powering digital asset mining operations. If enacted, the proposed incentives will apply to properties beginning operations in 2026.

Flared gas is natural gas that is burned off at oil and gas production sites because it cannot be captured or transported economically. Instead of being used, it’s released and burned in large flames, mostly as a waste byproduct. This process is done to relieve pressure or dispose of excess gas, but it also contributes to carbon emissions and energy waste. Ted Cruz’s bill aims to turn that wasted gas into useful energy for Bitcoin mining instead of letting it pollute the air.

The FLARE Act has already received backing from a number of well-known industry players, including the mining advocacy group Digital Power Network and Bitcoin miner MARA Holdings. Supporters argue the bill will not only reduce harmful emissions but also unlock underutilized energy resources that will help establish Texas as a leader in the crypto mining sector. The bill also includes a provision that will prohibit companies that are owned by foreign adversaries from accessing the same incentives. This move aligns with broader US efforts to limit foreign influence in critical infrastructure sectors.

Senator Cruz, who has been serving in the US Senate since 2013, is a well-known advocate for crypto innovation. He has previously introduced legislation to block the Federal Reserve from issuing a central bank digital currency (CBDC). Additionally, his personal financial disclosures revealed that he holds up to $100,000 in Bitcoin.

It is still uncertain how much legislative momentum the FLARE Act will gain due to the ongoing debates in Congress over digital asset regulation, stablecoin frameworks, and broader crypto market structure bills. Lawmakers are also considering proposals to prevent the issuance of a US CBDC and to remove regulatory hurdles for crypto investments in retirement plans. For now, Cruz’s latest bill adds to the growing list of crypto-related legislation under discussion in Washington.

Cruz’s bill comes at a time when there is a broader shift in Bitcoin mining toward cleaner energy. A recent report revealed a sharp decline in coal usage and increased adoption of renewables in Bitcoin mining. Coal's share in Bitcoin mining's energy mix dropped from 63% in 2011 to just 20% in 2024. At the same time, renewable energy usage in Bitcoin mining has grown steadily, increasing at an average annual rate. This data shows a clear trend of the Bitcoin mining industry shifting towards cleaner, more sustainable energy sources.

Crypto mining companies are also catering to investors. GoMining, a platform that specializes in Bitcoin mining through data centers, recently announced the launch of a $100 million Bitcoin mining fund targeted at institutional investors. The fund, named Alpha Blocks Fund, will be custodied by Bitgo and promises annual distributions derived from Bitcoin mining yield. Its strategy centers on reinvesting Bitcoin rewards to grow the fund’s hashrate and enhance mining efficiency, offering investors direct exposure to mined Bitcoin rather than passive equity investments.

The launch of the fund happened amid growing interest from companies and institutions in Bitcoin, driven by a broader resurgence of the cryptocurrency market. Several companies have added Bitcoin to their balance sheets, resulting in large increases in their stock valuations. GoMining’s Alpha Blocks Fund aims to provide institutional-grade exposure to Bitcoin mining while still complying with regulatory standards. It operates with 7.3 Exahash of active hash power and charges a flat annual management fee of 2%, with no performance fees.

In addition to the institutional fund, GoMining continues to offer products tailored to retail users who may not have the resources to set up large-scale mining operations. In 2024, the company introduced a gamified Bitcoin mining experience through non-fungible tokens (NFTs), which helped make mining more accessible to individual users. Institutional interest in cryptocurrencies has been on the rise since the launch of the first cryptocurrency exchange-traded funds (ETFs) in the United States in 2024. Increased regulatory clarity and growing enthusiasm for digital assets are also contributing to this trend.