Arkansas House Committee Approves Bills to Strengthen Regulations on Cryptocurrency Mining
Arkansas House Committee Approves Bills to Regulate Cryptocurrency Mining
In a significant move to address concerns surrounding cryptocurrency mining in Arkansas, two bills aimed at strengthening regulations on the industry easily cleared a House committee on Tuesday at the state Capitol.
The House City, County and Local Affairs committee voted to approve Senate Bill 78 and Senate Bill 79 after a lengthy discussion and questions from lawmakers about the contents of the bills. Senate Bill 78, sponsored by Sen. Joshua Bryant, R-Rogers, and Senate Bill 79, sponsored by Sen. Missy Irvin, R-Mountain View, both received near-unanimous approval from the committee.
While the proposed legislation passed with overwhelming support, some lawmakers raised concerns about certain sections of the bills, including addressing noise generated by crypto mining facilities, restrictions on foreign investment in crypto mining operations, and the distribution of awards from actions taken against businesses found to violate the rules.
Both bills are set to go before the full House of Representatives during Wednesday’s floor session. If approved, the legislation will then head to Gov. Sarah Huckabee Sanders’ desk for her signature, with the bills containing emergency clauses that would make them effective immediately upon approval.
Senate Bill 78 focuses on noise reduction techniques for crypto mining operations, requiring businesses to implement measures such as liquid cooling and fully enclosing the space where noise is produced. The bill also allows for the use of passively cooled containers if the business is located at least 2,000 feet from the nearest residential or commercial structure.
On the other hand, Senate Bill 79 mandates that crypto mining businesses obtain a permit from the Oil and Gas Commission to operate, providing state-level regulatory oversight for the industry.
The proposed legislation seeks to amend portions of Act 851 of 2023, known as the Arkansas Data Centers Act, which limited the ability of local governments to regulate crypto mines. Lawmakers have called for greater regulation following complaints about noisy crypto mining operations in the state.
Sen. Bryant, who sponsored Act 851, emphasized the need for local control and clarified that individuals have the right to engage in crypto mining as a hobby within their homes.
Sen. Irvin described Senate Bill 79 as a constituent-driven bill, aiming to establish measured state-level regulation for the industry. The bill’s House sponsor, Rep. Jeremiah Moore, highlighted the importance of additional controls at a higher level of government.
One key aspect of the bills is the prohibition of certain foreign parties, such as China, from owning crypto mines in Arkansas. Businesses owned by prohibited foreign parties would have to divest their interests within a specified timeframe.
Despite some concerns raised by lawmakers, the bills received strong support from the committee, with only one member voting against the proposed legislation. Members of the Committee to Protect Arkansas County expressed their approval of the bills, emphasizing the importance of protecting citizens’ rights and communities.
Overall, the approval of these bills marks a significant step towards regulating the cryptocurrency mining industry in Arkansas and addressing the various concerns associated with it.
