Resolution Nears in Arkansas County Cryptocurrency Mining Dispute

A resolution appears to be on the horizon in the ongoing dispute between Jones Digital LLC and Arkansas County over cryptocurrency mining operations. Attorneys for both parties met with a federal judge on Friday to propose a consent decree aimed at resolving the issue.

The conflict began when Arkansas County officials passed legislation imposing retroactive conditions on crypto mining operations, which Jones Digital LLC claimed were more stringent than previously agreed-upon conditions. The company filed a lawsuit in federal court, alleging that the county’s ordinances were specifically targeting their business.

In response to the dispute, the Arkansas General Assembly passed Act 851 in 2023 to clarify guidelines for data asset miners and prohibit local governments from passing noise or zoning ordinances directly aimed at crypto mines. However, concerns over noisy crypto mining operations led lawmakers to reconsider the law, resulting in the drafting of two bills for further regulation.

The case took a positive turn in November when U.S. District Court Judge Lee Rudofsky issued a preliminary injunction against Arkansas County officials from enforcing the restrictive ordinances. The judge indicated that the July ordinance would be sufficient to protect the area’s wildlife, and he expressed doubts about the necessity of the more stringent October amendment.

During a recent hearing, a group of Arkansas County residents opposed to the consent decree withdrew their objections after modifications were made to clarify that the decree would not infringe on their constitutional rights. Attorneys for Jones Digital and Arkansas County expressed their desire to reach a settlement to avoid prolonged litigation and provide certainty for both parties.

The proposed consent decree includes a permanent injunction barring discriminatory regulations or taxes targeting Jones Digital and specifies that any county actions affecting the company’s operations must be lawful. After addressing concerns about the decree’s language, the attorneys agreed to submit an amended version for the judge’s review.

If the amended consent decree meets Judge Rudofsky’s approval, a written order may be issued without the need for another hearing. The resolution of this dispute could set a precedent for how cryptocurrency mining operations are regulated in Arkansas and beyond. Stay tuned for updates on this developing story.