“Regulations for Crypto Mining Under Review by Legislative Committee”


The House Select Committee on Rules in Arkansas has approved eight resolutions aimed at regulating crypto mining. Six of the resolutions were sponsored by Rep. Josh Miller and are similar to Senate resolutions filed by Sen. Bryan King. The other two resolutions were sponsored by Rep. Rick McClure and Rep. Jeremiah Moore, and are similar to Senate resolutions filed by Sen. Joshua Bryant and Sen. Missy Irvin.

In addition to the resolutions targeting crypto mining, the committee also approved a resolution to increase employee pay.

These resolutions come in response to the passing of the Arkansas Data Centers Act in 2023, which restricted local governments from passing noise and zoning ordinances that specifically targeted crypto mines. Many state lawmakers have since expressed regret for their vote on the law.

During the committee meeting, Rep. Miller expressed his desire for a fair and open discussion on the issue during the fiscal session. He also noted that the state Senate had already begun discussing the issue.

One of the resolutions, House Resolution 1014, aims to prohibit the use of computers and software developed by foreign entities in crypto mining. It defines a “covered foreign entity” as an individual, foreign government, or other party on the U.S. Secretary of Commerce’s Consolidated Screening List or Entity List, or a subsidiary or affiliate of these entities.

House Resolution 1018 seeks to amend the Arkansas Data Centers Act and the Uniform Money Services Act by repealing an exemption for home crypto mining and changing the definition of “money transmission” to include engaging in home digital asset mining or operating a digital asset mining business.

Other resolutions include House Resolution 1015, which would regulate the ownership of crypto mining businesses by certain foreign nationals, and House Resolution 1017, which addresses the impact of crypto mining on water usage and the electric grid.

House Resolution 1016 would require crypto mining businesses to provide notice before buying land or beginning construction of a mining facility. House Resolution 1009, sponsored by Rep. McClure, also seeks to amend the Arkansas Data Centers Act to prohibit foreign-party controlled ownership of a crypto mining business.

Rep. Bryant, the Senate sponsor of the Arkansas Data Centers Act, has since expressed regret over the law.

Another resolution, House Resolution 1020, sets limits on the noise levels of crypto mines and businesses using blockchain networks. Rep. Moore, the House sponsor for the resolution, stated that he has spent a significant amount of time discussing the issue with concerned citizens.

Rep. Jim Wooten also presented a resolution similar to one by Sen. Breanne Davis, which would authorize the introduction of a nonappropriation bill to change the state’s uniform classification and compensation act.

During the committee meeting, a pastor and a small business owner urged lawmakers to tighten restrictions on crypto mining. They expressed concerns about health risks and the impact on communities.

The resolutions will now go before the full House of Representatives for a vote.

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