Arkansas Senate Bills Addressing Cryptocurrency Mining Expected to be Heard in State House

The Arkansas Senate passed bills this week that would amend the Arkansas Data Centers Act of 2023, which opened the door for cryptocurrency mining in the state. The bills, SB 78 and SB 79, aim to address concerns that have arisen since the influx of “crypto miners” following the 2023 law.

Crypto mining centers have become a hot topic in Arkansas due to complaints about noise levels, possible ties to foreign governments, and strains on the energy grid. Some residents have raised concerns about the constant noise emanating from the servers housed at these mines, as well as the ownership of some mines by foreign entities.

However, not all crypto mining centers in the state are causing issues. Ben Smith, president of the Arkansas Blockchain Council, believes that crypto mining represents a great opportunity for Arkansans and the state as a whole. He argues that the legislation proposed by Sens. Bryant and Irvin will address the concerns people have about crypto mining.

The House is expected to consider the bills in a fiscal session, with a committee hearing scheduled for Thursday. SB 78 would impose noise limits, require soundproofing measures, and ban certain foreign nationals from owning crypto mining operations in Arkansas. SB 79 would add more soundproofing measures and distance requirements from nearby structures.

Despite concerns about energy use, Smith argues that crypto miners are under contract with Entergy to shut down during peak power needs and utilize unused power. He believes that most mines do not cause problems for local residents and could bring significant tax revenue to the state.

Local crypto proponent Steve Landers Jr. emphasizes the importance of education and involvement in the crypto industry, as it may represent the future of currency. With the potential economic benefits of crypto mining, many in Arkansas are eager to see how the legislation will shape the industry in the state.