Senate Resolution 11 Passes Easily in Senate, Faces Uncertain Future in House

Senate Resolution 11, proposed by Sen. Bryan King (R-Green Forest), has successfully passed through the Senate with a two-thirds majority vote. The resolution aims to impose fees on crypto mines for excessive energy usage, in response to backlash against Act 851 of 2023 which limited the ability of local communities to regulate bitcoin mining operations.

King, known for his criticism of crypto mining operators, filed a total of six resolutions, five of which were approved by the Senate on Thursday. The flurry of bills also includes proposals from other senators, such as Sen. Missy Irvin (R-Mountain View) and Sen. Joshua Bryant (R-Rogers), with differing approaches to regulating the industry.

The 2024 fiscal session, primarily for budget-related bills, requires a two-thirds majority in both the Senate and the House to consider non-budget matters. SR11 cleared this hurdle in the Senate today with 28 yes votes, 3 no votes, and 3 members not voting.

The resolution would impose varying fees on crypto mines based on their energy usage, with the funds being distributed to state departments for oversight and monitoring of the industry. However, the path for these resolutions in the House, particularly in the House Rules committee, may present challenges for their approval.

Bitcoin mining, which involves solving complex mathematical puzzles using high-powered computers, has raised concerns among local residents due to its energy consumption, noise, and potential impact on the environment. King’s proposals seek to repeal Act 851 and allow local municipalities to regulate crypto mines like any other industry.

Observers at the Capitol anticipate a tougher battle for reforming Act 851 in the House, where lawmakers may attempt to modify the legislation to appease both critics and supporters of the crypto mining industry.