Arkansas House Committee Approves Bills Regulating Cryptocurrency Mining Operations
Arkansas House Committee Approves Bills Regulating Cryptocurrency Mining Operations
In a significant move, an Arkansas House committee approved two bills on Tuesday that would regulate cryptocurrency mining operations in the state. The full House is set to consider sending the bills to the governor’s desk on Wednesday, marking a pivotal moment in the state’s approach to this emerging industry.
The bills come a little over a year after Act 851 of 2023 brought crypto mining to statewide attention by limiting local governments’ ability to regulate data centers, including crypto mines. These mines, large groups of computers that harvest digital currency, are often located in rural areas due to the space they require. However, concerns have been raised about potential foreign ownership and national security risks associated with these operations.
Senator Joshua Bryant, a co-sponsor of both bills, highlighted the key provisions. Senate Bill 78 would impose noise limits on crypto mines, prohibit ownership by certain foreign entities, and allow local governments to pass ordinances regulating the mines. Senate Bill 79, on the other hand, would require crypto mines to be licensed by the state Oil and Gas Commission.
One contentious issue in the bills is the prohibition of ownership by certain foreign countries, as outlined in the federal International Traffic in Arms Regulations. While most lawmakers supported the bills, Representative Andrew Collins expressed reservations about the foreign ownership language, citing concerns about potential restrictions on citizens of those countries living in the United States.
The bills’ sponsors, all Republicans, addressed questions and concerns raised by lawmakers, particularly regarding the impact of crypto mining on electricity usage and groundwater availability. The oversight framework in SB 79 aims to ensure the responsible management of natural resources and prevent depletion in the long run.
Looking ahead, lawmakers anticipate more crypto mining legislation in the 2025 legislative session. Despite differing opinions, Representative David Whitaker emphasized the importance of passing these bills to set a precedent for future discussions and regulations in the industry.
As Arkansas navigates the complexities of regulating cryptocurrency mining, the decisions made in the coming days could shape the state’s approach to this rapidly evolving sector. Stay tuned for updates on this developing story.
