Arkansas Senate adopts resolution to regulate crypto mining industry

Arkansas Senate Passes Resolution to Regulate Crypto Mining Industry

In a move to address concerns over the impact of crypto mining operations on the state, the Arkansas Senate adopted a resolution on Monday that would impose regulations on the industry. Sponsored by Sen. Bryan King, the resolution would require digital asset mining businesses in Arkansas to pay an annual fee for their “extraordinary electrical energy usage.”

The fee, which would range from $25,000 to $100,000 per year depending on the amount of electrical energy used, aims to offset the costs associated with the high energy consumption of crypto mining operations. Senate Resolution 11 had initially faced challenges in garnering enough support to move forward but was ultimately adopted after a motion to expunge a previous vote was approved.

If passed, 25% of the funds collected through the fee would be allocated to the Office of the Attorney General to support oversight and monitoring of digital asset mining businesses. Fifty percent of the proceeds would go to the State Securities Department, with the remaining 25% going to the Department of Energy and Environment for operational expenses and monitoring of the industry.

Sen. King highlighted the impact of crypto mines on water resources in the state, citing concerns over low water tables and potential strain on the grid. He emphasized the need for regulations to ensure fairness and address the environmental and community impacts of crypto mining operations.

Earlier testimony presented to lawmakers highlighted issues such as noise pollution and high water usage associated with crypto-mining facilities. The regulations proposed in the resolution aim to address these concerns and promote responsible practices within the industry.

As the resolution moves forward, stakeholders in the crypto mining industry and environmental advocates will be closely watching to see how these regulations will impact operations in Arkansas. Stay tuned for updates on this developing story.