Crypto mining regulations in Arkansas move closer to governor’s approval

Two bills that aim to regulate cryptocurrency mining in the state of Arkansas have successfully passed the state’s House of Representatives and are now on their way to the Governor’s office, where they will be signed into law. The Arkansas House of Representatives approved Senate Bills 78 and 79 on May 1, which introduce various restrictions on crypto mining activities. Senate Bill 78 imposes noise limits on mining farms, regulates water usage for cooling purposes, prohibits foreign entities from owning mining operations, and gives local governments control over their regulation. Meanwhile, Senate Bill 79 establishes a state licensing and regulatory system overseen by the Oil and Gas Commission under the Department of Energy and Environment. Governor Sarah Huckabee Sanders has expressed her intention to sign the bills into law. These two bills will amend the Arkansas Data Centers Act of 2023, which was quickly passed in the state legislature and provided some protections for mining sites. However, the act faced criticism in April as it greatly limited the authority of local governments to regulate crypto mining operations, resulting in backlash from affected rural communities. Representative Jeremiah Moore, who sponsored Bill 79, acknowledged that the state is witnessing the emergence of a mining industry unlike anything seen before. Governor Sanders’ spokesperson stated that the governor strongly supports banning foreign adversaries from owning crypto mines in Arkansas, while also protecting rural communities and empowering them to crack down on malicious actors. The issue of crypto mining has become a contentious topic in the United States, with the Biden administration adopting a stricter stance on mining operations and looking to China as a model to follow. In the midst of these developments, Bitcoin is facing challenges in meeting “Net Zero” commitments.