Regulation
Crypto Mining Restrictions: Arkansas Lawmakers Approve Bills
Over the past two years, the U.S. government has try to tighten its grip on different sectors of the crypto industry. As a result, these efforts have received significant backlash from politicians and central figures in the crypto space.
This week, another crackdown on the crypto industry took place after Arkansas lawmakers approved two bills to address criticism over previous regulations on mining operations.
New Crypto Mining Regulations in Arkansas
News media The Associated Press (AP) reported The Arkansas House of Representatives gave final approval to two bills related to cryptocurrency mining operations in the state on Wednesday.
The two bills supported by the Senate, SB78 And SB79, were among the few non-budget items on the agenda of the legislative session and were “overwhelmingly approved” by the House Republican majority. They are heading to the office of Republican Governor Sarah Huckabee Sanders.
Last year, Arkansas lawmakers faced backlash after approving the Arkansas Data Center Act of 2023. The approved Act 851 established an overall favorable regulatory framework for crypto miners in the state, establishing clear definitions and guidelines.
As a Bitcoinist reported, the law included provisions prohibiting discrimination against minors of digital assets. Additionally, it sought to protect crypto mining companies from “discriminatory regulations” and ensure their equal treatment as data centers.
Law 851 has been criticized for limiting the local government’s ability to pass measures to regulate mining companies. Now, the Arkansas Senate and House of Representatives intend to address complaints about last year’s law with newly approved bills.
These bills respond to backlash from local officials and residents living near the operations, who have complained about the impact of noise on the community. As a result, lawmakers added the requirement for noise abatement techniques and a state operating permit.
Additionally, both bills addressed restrictions on the use of water for cooling techniques and removed the limitation to regulate the sound decibels generated by mining installations. Republican Rep. Rick McClure said:
Let’s do what we can to help those who have been negatively impacted and work towards better solutions.
Additionally, the approved bills prohibit ownership of crypto mining businesses by companies and individuals from several countries, including China.
Nonetheless, it continues to restrict the regulatory power of local authorities on issues such as home mining by individuals or the rezoning of areas where cryptocurrency mining businesses are located.
Governor Sanders to sign bills despite concerns
According to AP, one of the representatives who voted against the bills, Democrat Andrew Collins, expressed concerns about the wording of the limit and the impact it could have on foreign investment:
We cast a net both too wide and too narrow. It’s going to catch up with people who are completely innocent, and it’s going to miss out on a lot of people who are either from the country or from countries that aren’t on this list.
Rep. Justin Gonzalez also voted against the bills. During an interview on Wednesday, he expressed his opinion on the subject. For the representative, the bills “will allow local governments to discriminate against a business simply because of what it is.”
According to the Arkansas attorney reportsGonzales doesn’t believe the law needs to be changed, although he doesn’t have a problem with the language used to address the issue of foreign ownership.
Regardless of the opposition’s concerns, the bills would need to be approved by Arkansas’ governor. Alexa Henning, a spokesperson for Sanders, said in an email that both bills would be signed, further alleging that:
The governor was the first in the nation to expel a Chinese communist company from his state and strongly supports banning foreign adversaries from owning crypto mines in Arkansas, while protecting and empowering rural communities. crack down on bad actors.
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