Two bills aimed at regulating cryptocurrency mining in Arkansas have successfully passed the state’s House of Representatives and are now on their way to the Governor’s office for final approval, marking the last step before they become official laws.
According to reports, on May 1, the Arkansas House of Representatives approved Senate Bills 78 and 79, which seek to impose restrictions on certain activities related to crypto mining within the state.
Senate Bill 78 specifically focuses on implementing noise limits on crypto mining farms, regulating the use of water for cooling purposes, prohibiting foreign entities from owning mining operations, and restoring the authority of local governments to regulate these activities.
On the other hand, Senate Bill 79 establishes a state licensing and regulatory system that will be overseen by the Oil and Gas Commission under the Department of Energy and Environment.
Governor Sarah Huckabee Sanders is expected to sign both bills into law, as stated by her office, according to the Associated Press.
These two bills will amend the Arkansas Data Centers Act of 2023, which was swiftly passed by the state’s legislature and provided some level of protection for mining sites.
In April, when the two bills were initially proposed, there was a heated debate surrounding the Arkansas Data Centers Act. Critics argued that it significantly limited the ability of local governments to regulate crypto mining operations, leading to widespread outrage and complaints from affected rural communities.
Representative Jeremiah Moore, the sponsor of Bill 79, highlighted that the state is witnessing the emergence of a mining industry, stating, “We’ve never experienced anything quite like this in our state before,” as reported by the Arkansas Advocate.
Governor Sanders’ spokesperson assured the Arkansas Advocate that she fully supports the prohibition of foreign adversaries from owning crypto mines in Arkansas. Additionally, the governor aims to protect rural communities and empower them to take action against any malicious actors within the industry.
Cryptocurrency mining has become a contentious issue in the United States, with the Biden administration adopting a stricter stance on mining operations in April, using China as an example for the country to follow.
In summary, the approval of these bills in Arkansas represents a significant development in the regulation of crypto mining within the state, as it seeks to strike a balance between protecting local communities and fostering the growth of the mining industry.