Arkansas Senate Committee Advances Bills to Impose Restrictions on Crypto Mining

Senate Committee Advances Bills to Impose Greater Restrictions on Crypto Mining in Arkansas

In a move to impose greater restrictions on crypto mining in Arkansas, a Senate committee voted Tuesday to advance two amended bills sponsored by Sen. Joshua Bryant, R-Rogers, and Sen. Missy Irvin, R-Mountain View.

Senate Bill 78 and Senate Bill 79 received approval from the Senate City, County and Local Affairs committee after amendments were made to the bills. The lawmakers were asked to present the amendments to the public for comment before the committee.

Bryant’s legislation aims to restore local control to counties by repealing part of the Arkansas Data Centers Act of 2023. It also establishes standards requiring crypto mines to use noise reduction techniques and maintain a distance of 2,000 feet from residential or commercial structures.

Irvin’s bill provides a framework for state oversight of crypto mining in conjunction with local authorities. A new amendment was introduced to clarify the definition of “digital asset mining business” and its relation to blockchain networks.

Both bills address concerns about foreign ownership in crypto mining operations, with prohibited foreign party-controlled businesses facing penalties and requirements to divest within a year of the legislation’s effective date.

During the committee meeting, no members of the public spoke on the bills. However, Sen. Bryan King raised questions about the legal implications of certain provisions in the legislation, including the use of industry standards for noise reduction techniques.

The Senate will revisit Bryant’s and Irvin’s bills in their session later today at 1 p.m. as the debate over crypto mining regulations in Arkansas continues.