The Public Utility Commission of Texas has filed a lawsuit against State Attorney General Ken Paxton, escalating a battle over public access to data about cryptocurrency mining facilities across the state. The legal action represents a significant development in the ongoing tension between transparency requirements and security concerns surrounding the rapidly expanding Bitcoin mining industry in Texas.
The Regulatory Dispute
The controversy stems from requests by journalists from Straight Arrow News and The Texas Tribune for information about Bitcoin mining facilities registered with the state. Under Senate Bill 1929, passed by the Texas Legislature in 2023, cryptocurrency facilities with an electrical load above 75 megawatts must register with the Public Utility Commission by February 2025. The requested data includes facility names, locations, owners, and power consumption details.
When reporters initially sought this information through public records requests, the Public Utility Commission denied access, citing security concerns. However, in May 2025, Assistant Attorney General Blake Brennan ruled in favor of the journalists, writing: “We find you have failed to demonstrate the information at issue identifies technical details of particular vulnerabilities of critical infrastructure to an act of terrorism.”
Commission’s Security Arguments
The utility commission, whose members are appointed by Republican Governor Greg Abbott, has doubled down on its position by filing the lawsuit in June. In a June 27 legal filing, the commission’s lawyers argued that “in the wrong hands, this information could be used by terrorists to plan attacks on Texas’s energy grid and critical infrastructure.”
The commission’s stance reflects broader concerns about the vulnerability of Texas’s electrical grid, particularly given the state’s position as a major hub for cryptocurrency mining operations. Texas has attracted Bitcoin miners due to its electric grid infrastructure, favorable tax policies, and abundance of available land.
Industry and Legal Implications
This legal battle highlights the regulatory challenges facing Bitcoin mining operations as they scale up across Texas. The registration requirement under Senate Bill 1929 was designed to bring transparency to large-scale mining operations, but the current dispute creates uncertainty about what information will ultimately become public.
The outcome could significantly impact compliance strategies for mining companies operating in Texas. If the commission prevails, it may encourage other states to adopt similar information-blocking measures, potentially creating a patchwork of disclosure requirements across different jurisdictions.
For mining operations, the case underscores the importance of engaging with both utility regulators and state authorities on data disclosure policies. The tension between operational transparency and security concerns is likely to remain a key regulatory challenge as the industry continues to expand.
The lawsuit also reflects the broader debate over Bitcoin mining’s impact on local communities and electrical grids. While proponents argue that Bitcoin mining strengthens electrical grids because facilities can quickly reduce power consumption when needed, critics contend that the industry pushes up electricity prices and affects quality of life in host communities.
As this case proceeds through the courts, it will likely set important precedents for how states balance public transparency requirements with infrastructure security concerns in regulating the cryptocurrency mining sector.
