Arkansas Senator Calls For Reversal Of Controversial New Crypto Mining Law

In April 2023, Arkansas made history by becoming the first state passes A Bitcoin “Right to Mine” bill is in both the House and Senate. However, Arkansas’ “Right to Mining” law is facing increasing opposition as it relaxes regulations for commercial cryptocurrency mining.

reports They suggested that the easing of restrictions on commercial cryptocurrency mining has raised concerns. This is because after the enactment of the new law, large, electricity-guzzling crypto miners have entered Arkansas.

The legislation sparked controversy by limiting the power of city governments to regulate cryptocurrency miners. This effectively stripped them of their ability to enforce local ordinances regarding such operations.

During the 2023 legislative session, Arkansas Senator Brian King (R) of the 28th District voiced criticism of the bill’s introduction. Senator King reportedly plans to introduce another bill aimed at repealing the controversial Right to Mine Act.

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Reports indicate that residents have raised numerous concerns, including excessive noise, heavy use of the power grid, and the fact that Green Digital LLC. , the company behind proposed crypto mines in their cities, is a part-owned subsidiary of the Chinese Communist Party.

Some cities have rejected proposed cryptocurrency mining facilities

Arkansas Senator Brian King has taken proactive steps by drafting a bill aimed at repealing a controversial law related to cryptocurrency mining. One of the main concerns is the stress on the local power grid caused by the electricity-intensive nature of cryptocurrency mining operations.

Reports have emerged that some areas are already facing warnings of possible power outages or outages. This is due to the increased energy consumption of these facilities.

As of now, local reports state that Arkansas is home to about 10 crypto miners. Philonia and Harrison, two towns in Arkansas, have blocked attempts to build proposed crypto-mining facilities within their city limits.

Senator Brian King has also emphasized that cryptocurrency mines do not serve as economic rewards for the communities in which they establish their operations.

He specifically highlighted that facilities such as those proposed by Green Digital only employ a limited number of people. As such, mines fail to provide significant employment or significant economic growth for the areas in which they operate.

Call for a mining bill

Senator Joshua Bryant (R), who sponsored the bill, explained that the bill aims to protect property rights and stop unfair treatment of crypto entrepreneurs.

He said crypto miners are people who live in Arkansas and invest money in the state’s infrastructure, help keep utility costs stable, and boost the local economy.

Bryant points out that if crypto mining facilities are treated similarly to other data centers, the law allows local governments to create their own regulations.

Furthermore, he made it clear that with regard to noise ordinances, local governments are free to regulate commercial establishments as they see fit.

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However, the bill specifically focuses on home mining operations. In this regard, he suggests adhering to existing federal and state laws regarding harassment. It also includes the US Environmental Protection Agency’s Noise Code or the standard legal language described in the Noise Act.

However, Arkansas’ Right to Mine law is set to go into effect next month.

The total cryptocurrency market cap has reached $1.17 trillion on the one-day chart | source: TradingView

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