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Arkansas State Governor to Sign Bills Regulating Crypto Mining Activities
Arkansas State Governor Sarah Huckabee Sanders is anticipated to sign two new bills that aim to regulate crypto mining activities within the state, as indicated by various sources.
The state legislators successfully passed Senate Bills 78 and 79 on May 1 to fortify the regulations overseeing crypto miners operating in Arkansas.
These legislative endeavors directly address concerns that emerged subsequent to the enactment of Act 851. Even though Act 851 smoothly traversed the 2023 regular session, it encountered criticism over perceived deficiencies in monitoring crypto mining activities.
Local residents have reportedly voiced apprehensions regarding the disruptive noises emanating from the crypto mines and their substantial water and energy consumption.
The bills materialized in a remarkable timeframe, less than a month after the Arkansas Senate sanctioned a resolution proposing the enforcement of fees on crypto miners for excessive utilization of energy.
The Legislative Measures
Senate Bill 78 concentrates on mitigating noise pollution and curtailing water consumption by miners. It prohibits foreign entities from owning mining operations within the state and delegates the authority to local governments to supervise miners’ operations.
In contrast, Senate Bill 79 requires crypto miners to obtain licenses before commencing operations in the state. It recommends the establishment of a state licensing system to be overseen by the Department of Energy’s Oil and Gas Commission.
Significantly, both bills incorporate a clause that prohibits ownership of crypto mines by foreign parties hailing from countries subjected to the federal International Traffic in Arms Regulations ban.
Representative Andrew Collins, an opponent of the bills, expressed reservations about their potential impact on foreign investments. He contended that their scope might inadvertently ensnare innocent entities while disregarding undisclosed domestic or foreign actors.
Conversely, Representative Jeremiah Moore, one of the bill sponsors, underscored the unprecedented expansion of the crypto-mining industry within the state and emphasized the necessity of a robust regulatory framework to govern this burgeoning sector.
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