Senator Ted Cruz Introduces FLARE Act to Repurpose Flared Gas For Bitcoin Mining

It aims to align economic incentives with environmental mitigation efforts by enabling permanent full expensing for capital used in flare gas repurposing. The bill has been referred to the Senate Finance Committee, and further legislative action will determine its pathway through Congress.

Digital asset firms and policy groups have welcomed the proposal. Matthew Sigel, head of digital assets research at VanEck, said: “Great to see Senator Ted Cruz 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.” Bitcoin miners have increasingly turned to stranded energy sources, including flared gas, to power operations. By collocating with oil fields, miners can capture gas that would otherwise be burned off, converting it into electricity for proof-of-work consensus networks. 

This approach also offers flexible load benefits for energy grids, particularly in rural and energy-abundant areas. Bitcoin mining firm MARA Holdings praised the legislation for allowing full expensing for infrastructure that captures and repurposes flared gas. The firm added: “MARA supports this legislation. It recognizes Bitcoin mining’s role in reducing emissions and unlocking stranded energy.”

The Digital Power Network, a coalition of mining and energy firms, issued a formal endorsement on its website. Hailey Miller, director of government relations and public policy at the Digital Power Network, called the bill “a monumental step forward for the US energy sector and the digital asset industry.” Miller added: “By incentivizing the capture of otherwise wasted natural gas, this bill supports grid stability, energy innovation, and the continued growth of sustainable Bitcoin mining in America. We commend Senator Cruz for his leadership in introducing this forward-thinking legislation.”

Additionally, the coalition highlighted several projected outcomes from the legislation, such as reduced harmful emissions, enhanced domestic energy production, improved grid resilience through flexible load response, and expanded economic opportunities in rural communities The bill comes amid improvements in regulatory clarity for the crypto industry in the US, adding a positive push by identifying crypto mining as a legitimate industrial use that can transform waste into productive energy.