The Arkansas State House has approved two bills that could impose restrictions on cryptocurrency mining within the state. While these bills have not yet become official laws, they lay the foundation for further discussions that may lead to potential legislation.
During a Senate hearing on April 17, lawmakers addressed concerns such as noise reduction, foreign ownership, and the proximity of crypto mines to residential areas. Out of the eight bills presented to the House, two were passed, despite the Senate only approving one bill last week that specifically dealt with cryptocurrencies.
There is a significant debate surrounding whether Act 851 should be amended, as well as the level of detail that these amendments should include. The committees will discuss this matter before potentially passing a law in either the current fiscal session or the next one.
According to the bill, the Arkansas Data Centers Act of 2023 aims to regulate the Bitcoin mining industry in the state by establishing guidelines for miners and protecting them from discriminatory regulations and taxes.
Bitcoin mining has faced criticism for its lengthy and energy-intensive process, which contributes to a significant amount of waste. Investopedia reports that Bitcoin mining generates over 77 kilotons of electrical waste annually.
Crypto mining also presents legal challenges in other countries. Lawmakers in Paraguay have proposed a bill to temporarily ban crypto mining and related activities in the nation, citing illegal crypto mines that steal power and disrupt the electricity supply. The proposed legislation aims to prohibit the establishment of crypto mining facilities and activities involving the creation, storage, preservation, and trade of cryptocurrencies.
However, progress on the mining ban in Paraguay has been halted by senators, and officials are now considering the possibility of selling excess energy from the Itaipu hydropower plant to miners.
Miners are currently facing pressure due to the upcoming Bitcoin halving. Markus Thielen, the head of research at 10x Research, suggests that miners may liquidate $5 billion worth of Bitcoin in the months following the halving. He also predicts that Bitcoin may experience a period of sideways movement for the next few months, similar to what has happened after past halvings. Thielen warns that the crypto markets may face a significant challenge during a six-month “summer” lull.
In a recent interview, Wolf Of All Streets expressed concerns about a future where Bitcoin reaches $1 million, referring to it as the “Hall of Flame.”