Arkansas Senate Passes Bills to Regulate Cryptocurrency Mining Operations
The Arkansas state Senate made significant progress on Wednesday by passing two bills aimed at regulating cryptocurrency mining operations in the state. Senate Bill 79 and Senate Bill 78 both received strong support in the Senate, with SB79 passing unanimously and SB78 passing with only three dissenting votes.
SB78, sponsored by Sen. Joshua Bryant, focuses on placing noise limits on crypto mines, prohibiting ownership by certain foreign entities, and allowing local governments to pass ordinances regulating the mines. Sen. Bryant described the bill as an “administrative fix” to Act 851 of 2023, also known as the Arkansas Data Centers Act, which limited local governments’ ability to regulate crypto mines.
The swift passage of Act 851 in the previous legislative session raised concerns among officials about the potential national security risks posed by crypto mines, particularly those with foreign ownership. Sen. Bryan King, a vocal proponent of cryptocurrency regulations, has been leading the charge in the Legislature to address these concerns.
Despite his efforts, six resolutions sponsored by Sen. King failed to pass in the House, preventing him from introducing his own set of regulations during the fiscal session. However, he did vote in favor of SB79, which contains similar language to SB78 and is sponsored by Sen. Missy Irvin.
Both bills would require “prohibited foreign-party-controlled businesses” to divest from ownership of Arkansas crypto mines within a year of the policies’ enactment. This provision has raised questions about the timeline for divestment, with Sen. King seeking clarification from Sen. Bryant on the reasoning behind it.
Sen. Irvin, whose district includes the Bono community where residents have filed a lawsuit over noise pollution from a local crypto mine, emphasized the importance of addressing the concerns raised by constituents.
Democratic Sens. Greg Leding and Stephanie Flowers also voted against SB78, expressing the need for more comprehensive regulations and potentially calling for a special session to address the issue.
Sen. Bryant has indicated that if SB78 and SB79 do not adequately address the public’s concerns with crypto mines, he will urge Gov. Sarah Huckabee Sanders to call a special session. Both bills have emergency clauses and would go into effect immediately upon the governor’s signature, signaling a proactive approach to regulating cryptocurrency mining operations in Arkansas.
