The Arkansas State House has approved two bills that may impose restrictions on cryptocurrency mining in the state. While these bills have not yet become official laws, they serve as a foundation for further discussions that could lead to potential legislation.
During a Senate hearing on April 17, lawmakers addressed various concerns related to cryptocurrency mining, including noise reduction, foreign ownership, and the proximity of mining operations to residential areas.
Out of the eight bills presented to the House, two were passed, even though the Senate had only approved one bill last week that specifically focused on cryptocurrencies.
There is ongoing debate regarding whether Act 851 should be amended and what level of detail those amendments should include. Committees will discuss the matter before potentially passing a law in either the current fiscal session or the next one.
The Arkansas Data Centers Act of 2023, as outlined in the bill, aims to regulate the Bitcoin (BTC) mining industry in the state by establishing guidelines for miners and protecting them from discriminatory regulations and taxes.
Bitcoin mining has been criticized for its lengthy and energy-intensive process, which leads to significant waste. According to Investopedia, Bitcoin mining produces over 77 kilotons of electrical waste annually.
The legal challenges surrounding crypto mining extend beyond the United States. Lawmakers in Paraguay have proposed a bill that would temporarily ban crypto mining and related activities in the country, citing the theft of power and disruption to the electricity supply caused by illegal mining operations.
However, progress on the mining ban in Paraguay has been halted by senators, and officials are now considering the option of selling excess energy from the Itaipu hydropower plant to miners.
Miners are currently under pressure due to the upcoming Bitcoin halving. According to Markus Thielen, the head of research at 10x Research, miners may sell around $5 billion worth of Bitcoin in the months following the halving.
Thielen explained that this selling pressure could last for four to six months, which may result in Bitcoin trading sideways, as it has done in previous halving events. He also suggested that the crypto market could face a significant challenge during a six-month period of low activity.
In a recent interview, the Wolf Of All Streets expressed concern about a world where Bitcoin reaches $1 million, raising questions about the potential consequences of such a scenario.