Arkansas State House Passes Bills to Restrict Crypto Mining

The Arkansas State House recently passed 2 bills that could impose restrictions on cryptocurrency mining within the state. These proposals have not yet been converted into law, but open the door to further discussions that could lead to new rules.

Bills address several concerns

The adopted bills address various concerns, such as noise pollution, foreign ownership and the distance of crypto mining facilities from residential areas. These issues were addressed during a Senate hearing on April 17.

The action in the House of Representatives, where two of eight proposed bills were approved, followed a more modest success in the Senate, which previously passed only one related bill. Further consultation is now underway on Bill 851, which could see significant changes.

One of the proposals, the Arkansas Data Centers Act of 2023, aims to set specific rules for the Bitcoin mining industry. The law should protect miners against discriminatory regulations and unjust taxes.

Cryptomining is under fire

The crypto mining industry, known for its energy-intensive processes and associated electrical waste, continues to come under fire worldwide. Experts say the industry produces more than 77 kilotons of electrical waste every year.

There are also developments internationally. In Paraguay, lawmakers have introduced a bill that would temporarily ban crypto mining amid concerns about illegal mines stealing power. This legislation would ban all activities involving the creation, holding, storage and trading of cryptocurrencies.

However, the debate in Paraguay has taken a turn, with the sale of excess energy from the Itaipu hydropower plant to miners now being considered, despite previously proposed restrictions.

Meanwhile, the crypto market is under pressure due to the upcoming Bitcoin halving, which could lead to a $5 billion sell-off of Bitcoin by miners in the coming months, according to Markus Thielen of 10x Research. Thielen warns that crypto markets may be in for a challenging period during a so-called “summer lull.”