Arkansas House Passes Two Bills to Regulate Cryptocurrency Mining
Summary:
The Arkansas House of Representatives has sanctioned two bills, Senate Bills 78 and 79, looking to regulate cryptocurrency mining in the state. Senate Bill 78 will impose noise level controls, restrict water usage, and prevent foreign-owned mining operations while restoring regulatory authority to local governments. Senate Bill 79 establishes a state-managed licensing and regulatory framework. Next, Governor Sarah Huckabee Sanders is expected to sign the bills into law. The measures will also amend the Arkansas Data Centers Act of 2023, which had faced criticism for limiting local authorities' control over mining operations.
The House of Representatives in Arkansas has successfully passed two legislative measures aimed at controlling cryptocurrency mining in the state. Both bills are now destined for the Arkansas Governor's office to receive final consent for them to become law. It was reported that the House passed Senate Bills 78 and 79 on May 1 for the purpose of regulating specific aspects of crypto mining operations within the state. Senate Bill 78 sets limits on noise levels from crypto mining farms, controls the usage of water for cooling purposes, and bans foreign ownership of mining operations while returning regulatory power to local authorities. Senate Bill 79 proposes a state licensing and regulatory framework managed by the Energy and Environment Department’s Oil and Gas Commission. Both bills are making their way to the office of Governor Sarah Huckabee Sanders, who is expected to sign them into law, as per information from the Associated Press.
The subsequent implementation of the two Senate bills will bring about modifications to the Arkansas Data Centers Act of 2023. This Act was previously passed promptly in the Arkansas Legislature, offering certain protective measures for mining sites. Back in April, there was extensive deliberation on the Act during the initial submission of the two aforementioned bills. This resulted from the Act's stringent restrictions on local government's ability to regulate cryptocurrency mining operations, causing upset and grievances among the affected rural communities.
The Republican House sponsor of Bill 79, Jeremiah Moore, remarked on the growing mining industry in the state, noting it as unprecedented. He was quoted by the Arkansas Advocate, a local media outlet. The Governor’s spokesperson also communicated to the Arkansas Advocate Sarah Huckabee Sanders' approval of banning foreign adversaries from possessing crypto mines in Arkansas, allowing rural areas to impose harsher restrictions on miscreants.
Cryptocurrency mining has become a contentious issue across the United States. In April, the Biden Administration concentrated on taking severe actions against such operations, using China's stance as a potential model for the U.S. According to a recent magazine report, Bitcoin could be heading towards a conflict with 'Net Zero' commitments.
Published At
5/2/2024 10:03:43 AM
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