Arkansas has introduced new laws to regulate Bitcoin mining, setting environmental standards, banning foreign ownership, and establishing a state licensing system.
Arkansas lawmakers have recently given final approval to two bills designed to regulate Bitcoin mining operations in the state. These bills, Senate Bills 78 and 79, have passed the Arkansas House of Representatives and are now headed to Governor Sarah Huckabee Sanders for her signature.
Senate Bill 78 aims to establish noise limits on Bitcoin mining operations, control water use for cooling, and prevent mining operations from being owned by foreign entities. It also restores the authority of local governments to oversee their regulation. Senate Bill 79 introduces a state licensing and regulatory framework managed by the Oil and Gas Commission, which falls under the Department of Energy and Environment.
The approval of these measures follows concerns raised after the Arkansas Data Centers Act of 2023, which restricted the ability of local governments to regulate mining operations and sparked opposition from rural communities. Representative Jeremiah Moore, who sponsored Bill 79, stated, "We've never seen anything quite like this in our state before," acknowledging the burgeoning mining industry in Arkansas.
Sanders' spokesperson Alexa Henning confirmed the governor's support for the legislation, saying, "The Governor was the first in the country to kick a Chinese communist-owned company out of her state and strongly supports outlawing foreign adversaries from owning Bitcoin mines in Arkansas while protecting rural communities and empowering them to crack down on bad actors."
These bills also address the issue of foreign ownership of mining operations by prohibiting businesses and individuals from certain countries, including China, from owning them in the state. The legislation was spurred on by the rise of Bitcoin mining in rural areas like DeWitt, the Bono community near Greenbrier, and an attempted establishment near Harrison.
Democratic Rep. Andrew Collins expressed reservations about the foreign ownership restrictions, saying they might unfairly target innocent individuals and miss potential bad actors. Meanwhile, Rep. Stephen Meeks supported the regulations on behalf of the Bono community, which has experienced noise pollution from a local mining operation.
The legislation has seen broad support in the Arkansas House, with both bills passing with 93 votes in favor. However, there was some opposition, with Rep. Justin Gonzales stating he believed the new regulations were unnecessary amendments to Act 851.
The current state of the event sees the bills on their way to be signed by the governor, which is expected to occur without any hindrances. These regulatory measures are seen as interim solutions until more comprehensive changes can be discussed in the next year's regular legislative session.
