Arkansas Senate Committee Advances Bills to Impose Restrictions on Crypto Mining
The Arkansas Senate committee took a significant step on Tuesday by advancing two amended bills aimed at imposing stricter regulations on crypto mining in the state. Sponsored by Sen. Joshua Bryant and Sen. Missy Irvin, the bills, Senate Bill 78 and Senate Bill 79, received approval for amendments from the Senate City, County and Local Affairs committee.
The amendments to the bills include provisions such as noise reduction techniques for crypto mines, establishing standards for their operation, and defining terms related to blockchain networks. Sen. Bryant’s legislation seeks to restore local control to counties by repealing part of the Arkansas Data Centers Act of 2023 and setting guidelines for noise reduction measures at crypto mining sites.
On the other hand, Sen. Irvin’s bill aims to provide a framework for state oversight of crypto mining in collaboration with local authorities. The bills also address concerns about foreign ownership in crypto operations, with restrictions on businesses controlled by prohibited foreign parties.
During the committee meeting, no members of the public spoke on the bills, but discussions among senators highlighted the need for legal clarity and the potential impact on property owners and the crypto industry. Sen. Bryan King raised questions about the legal standing of property owners in filing lawsuits and the use of industry standards for noise reduction measures.
The proposed legislation also addresses the divestment of interest in digital asset mining businesses by prohibited foreign parties within a year of the effective date. Sen. Irvin explained the rationale behind the timeline change, citing legal considerations and the need for stronger legal standing.
The Senate will revisit the bills in its upcoming session, where further discussions and potential amendments may take place. The outcome of these bills could have a significant impact on the crypto mining industry in Arkansas and set a precedent for regulations in other states. Stay tuned for updates on this developing story.
