Crypto mining regulations in Arkansas poised for governor’s approval

Two bills governing cryptocurrency mining in Arkansas have cleared 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 law.
According to reports, the Arkansas House of Representatives passed Senate Bills 78 and 79 on May 1, which aim to regulate certain aspects of crypto mining within the state. Senate Bill 78 focuses on imposing noise restrictions on mining farms, regulating water usage for cooling purposes, banning foreign entities from owning mining operations, and restoring local government control over their regulation. On the other hand, Senate Bill 79 establishes a state licensing and regulatory system overseen by the Oil and Gas Commission under the Department of Energy and Environment.
The next and final step is for the two bills to reach Governor Sarah Huckabee Sanders’ desk, who has indicated that she will sign them into law, as reported by the Associated Press.
These bills will amend the Arkansas Data Centers Act of 2023, which was swiftly passed by the Arkansas legislature and provided some level of protection to mining sites. However, the act received significant criticism in April when the two bills were initially proposed, as it severely limited the authority of local governments to regulate crypto mining operations. This led to outrage and complaints from affected rural communities, as reported by local outlet the Arkansas Advocate.
Representative Jeremiah Moore, the sponsor of Bill 79, acknowledged the emergence of the mining industry in the state, stating, “We’ve never experienced anything quite like this in our state before,” according to the Arkansas Advocate.
A spokesperson for Governor Sanders expressed her strong support for banning foreign adversaries from owning crypto mines in Arkansas, while also ensuring the protection of rural communities and empowering them to take action against malicious actors.
Crypto mining has become a contentious issue in the United States. In April, the Biden administration took a tougher stance on mining operations, using China as an example for the country to follow.