On Tuesday, a legislative panel authorized the Arkansas House to consider introducing bills to regulate cryptocurrency mining during the fiscal session. The House Select Committee on Rules approved eight resolutions aimed at amending the Arkansas Data Centers Act of 2023, which had previously limited the state and local governments’ ability to regulate crypto mining operations.
Cryptocurrency mines, which are large groups of computers that harvest digital currency, are typically located in rural areas due to their space and energy requirements. The proposed amendments come in response to concerns from Arkansas residents, including noise complaints and worries about foreign ownership and national security risks.
Republican Sen. Bryan King of Green Forest, who is leading the effort to amend the law, clarified that the goal is not to ban crypto mines but rather to have a fair discussion and take appropriate action. He expressed concerns about small towns and communities not having the resources to fight billion-dollar companies in federal court.
The reference to a special session alludes to limitations on considering non-budget bills during the current fiscal session. However, legislation unrelated to the state budget can be introduced if both the House and Senate pass resolutions with a two-thirds majority vote.
DeWitt resident Jackie Johnson shared her concerns about the potential impact of mining on her community and thanked lawmakers for opening up the conversation. Meanwhile, six House resolutions sponsored by Rep. Josh Miller and one sponsored by Rep. Rick McClure and Rep. Jeremiah Moore received unanimous approval from the committee. Rep. Jon Eubanks was the sole no vote for five of Miller’s proposals but did support House Resolution 1015, which would prohibit certain foreign nationals from owning or investing in a digital asset mining business in Arkansas.
The Senate and House are expected to convene on Wednesday to discuss the resolutions, with the possibility of reconvening on Thursday to take up the bills in committee. This comes after the Senate approved resolutions last Thursday and on Monday, clearing the way for crypto-related legislation to be considered.
In conclusion, the legislative panel’s decision on Tuesday to authorize the consideration of bills to regulate cryptocurrency mining during the fiscal session reflects the concerns and interests of Arkansas residents. The proposed amendments aim to address potential issues related to crypto mining operations while allowing for a fair discussion and appropriate action.