Arkansas Crypto Mining Is Facing Challenges From 2 New Bills

Key Points:

• Arkansas advances legislation to tighten regulations on cryptocurrency mining, with two bills clearing a House committee.
• Concerns over noise pollution, foreign investment, and environmental impact drive discussions among lawmakers.
• If approved, the proposed regulations could have immediate implications for the Arkansas crypto mining industry.

Arkansas crypto mining faces tighter regulations as two bills aiming to strengthen oversight clear a House committee at the state Capitol.

Arkansas Crypto Mining Squeezed: Bills Clear Committee

Sponsored by Sen. Joshua Bryant and Sen. Missy Irvin, Senate Bill 78 and Senate Bill 79, respectively, passed with near-unanimous approval despite concerns from some lawmakers.

According to local reports, the proposed legislation addresses issues like noise pollution from mining facilities and restrictions on foreign investment. Senate Bill 78 mandates noise reduction techniques like liquid cooling or enclosing the mining space, with exceptions for locations 2,000 feet from residential or commercial structures. Lawsuits can enforce these measures within the proximity.

Arkansas Legislation Signals Shift in Crypto Industry Landscape

Critics highlight cryptocurrency mining’s energy-intensive nature and environmental impact. Moreover, concerns persist regarding the labor-intensive coin creation process and its adverse effects. Lawmakers focused on provisions barring certain foreign entities, like China, from owning mines in Arkansas, aiming to curb potential risks associated with foreign ownership.

The bills’ passage through the House committee signals heightened scrutiny over crypto mining operations. They now await consideration by the full House of Representatives, with potential implications for the future of Arkansas crypto mining. If approved and signed into law by Governor Sarah Huckabee Sanders, the regulations would take immediate effect, reflecting the urgency surrounding the issue amidst critical elections where crypto voters wield significant influence.