Two bills aimed at regulating cryptocurrency mining in Arkansas have successfully passed the state's House of Representatives and are now poised for the final step of approval in the governor's office.
On May 1, the Arkansas House endorsed Senate Bills 78 and 79, which outline restrictions on certain aspects of cryptocurrency mining within the state.
Senate Bill 78 introduces measures such as noise limitations for cryptocurrency mining operations, regulations on water usage for cooling purposes, a prohibition on foreign entities owning mining facilities, and reinstatement of local government authority over mining regulation.
Meanwhile, Senate Bill 79 establishes a state-level licensing and regulatory framework overseen by the Oil and Gas Commission within the Department of Energy and Environment.
Both bills are now awaiting Governor Sarah Huckabee Sanders' signature, with her office indicating a commitment to sign them into law. These legislative actions represent amendments to the Arkansas Data Center Act of 2023, which swiftly cleared the state legislature and offered certain safeguards for mining sites.
Initially introduced in April, the bills sparked heated debates, particularly due to their potential impacts on local governments' ability to regulate cryptocurrency mining operations. This prompted criticism and grievances from affected rural communities.
According to Rep. Jeremiah Moore, the sponsor of Bill 79, Arkansas is witnessing a surge in mining activities, stating, "We used to have We have never seen anything like this in our state." Sanders' spokesperson affirmed the governor's strong support for barring foreign adversaries from owning crypto mining farms in Arkansas, while simultaneously safeguarding rural communities and empowering them to address any misconduct.
Cryptocurrency mining has emerged as a contentious issue in the United States, with President Joe Biden's administration adopting a more stringent stance on mining operations in April, citing China as a potential model for the country to emulate.
