Arkansas House to Consider Bills Strengthening Regulations on Cryptocurrency Mining
Arkansas lawmakers are gearing up to tackle the issue of cryptocurrency mining regulations with two bills set to go before the state House of Representatives next week. Sponsored by Sen. Joshua Bryant and Sen. Missy Irvin, the proposed legislation aims to address concerns such as noisy facilities and ownership of crypto mines by certain foreign parties.
The bills, Senate Bill 78 and Senate Bill 79, have already received broad approval in the Senate, with overwhelming support from lawmakers. If approved by the House, the legislation could be on Gov. Sarah Huckabee Sanders’ desk by Wednesday and would go into effect immediately upon her signature.
The proposed regulations come in response to the passage of Act 851 of 2023, which limited the ability of cities and counties to regulate crypto mines. Many legislators have expressed regret over the law after noisy crypto mining operations began popping up around the state.
Senate Bill 78 focuses on noise reduction techniques for crypto mining operations, while Senate Bill 79 would require businesses to acquire a permit from the Oil and Gas Commission to operate. Both bills also address the issue of ownership by prohibited foreign parties, with civil penalties and damages being split between the state Oil and Gas Commission fund and the attorney general’s office.
While the bills have received support from many lawmakers, some have raised concerns about restrictions on foreign-owned businesses and the potential for similar regulations in other industries. Sen. Bryant views the proposed legislation as the start of a conversation that will likely continue in next year’s regular legislative session.
The House resolutions authorizing the introduction of the Senate bills passed by significant margins, indicating strong support for the proposed regulations. However, some resolutions focused on placing further restrictions on crypto mines failed to meet the two-thirds requirement in the House.
As the debate over cryptocurrency mining regulations continues, Arkansas lawmakers are faced with the challenge of balancing the interests of local communities, business owners, and national security concerns. The outcome of next week’s House vote will determine the fate of the proposed legislation and the future of crypto mining in the state.
