Over the past two years, the US government has attempted to tighten its grip on various sectors of the cryptocurrency industry. As a result, these efforts have received significant backlash from politicians and central figures in the cryptocurrency space.
This week, another crackdown on the cryptocurrency industry occurred after Arkansas lawmakers approved two bills to address criticisms of previous regulations surrounding mining operations.
New cryptocurrency mining regulations in arkansas
News Media Associated Press (AP) mentioned On Wednesday, the Arkansas House of Representatives gave final approval to two bills related to cryptocurrency mining operations in the state.
The two bills approved by the Senate, SB78 And SB79, was among the few non-budget topics on the legislative session's agenda and was “overwhelmingly approved” by the Republican majority in the House of Representatives. They are on their way to Republican Governor Sarah Huckabee Sanders' office.
Last year, Arkansas lawmakers faced backlash after approving the Arkansas Data Centers Act of 2023. Approved Act 851 laid a comprehensive regulatory playing ground for cryptocurrency miners in the state, establishing clear definitions and guidelines.
As Bitcoinist reported, the law included provisions prohibiting discrimination against digital asset miners. Furthermore, it sought to protect cryptocurrency mining companies from “discriminatory regulations” and ensure they are treated equally as data centers.
Law No. 851 has been criticized for limiting the ability of local government to enact measures to regulate mining businesses. Now, the Arkansas Senate and House intend to address complaints about last year's law with newly approved bills.
These bills address backlash from local officials and residents living near the operations, who have complained about the noise's impact on the community. As a result, lawmakers added the requirement for noise abatement techniques and a state permit to operate.
Additionally, both bills address restrictions on the use of water for cooling technologies and the removal of restrictions on regulating the decibels of sound generated by mining facilities. Republican Representative Rick McClure stated:
Let's do what we can to help those who have been negatively affected, and work to find better solutions.
Furthermore, the approved bills prohibit the ownership of cryptocurrency mining companies by companies and individuals from several countries, including China.
However, it continues to restrict the regulatory power of local authorities over matters such as home mining by individuals or rezoning areas where cryptocurrency mining companies are located.
Governor Sanders signs bills despite concerns
According to the Associated Press, one of the representatives who voted against the bills, Democrat Andrew Collins, expressed concern about the wording of the limit and the impact it could have on foreign investment:
We cast a net too wide and too narrow. It will catch up with completely innocent people, and will miss a lot of people who grew up at home or come from countries not on this list.
Representative Justin Gonzalez also voted against the bills. During an interview conducted with him on Wednesday, he expressed his opinion on this matter. For the representative, the bills “would allow local governments to discriminate against a company just because of what it is.”
According to the Arkansas attorney ReportsGonzalez does not believe the law needs to be amended although there is no problem with the language used to address the issue of foreign ownership.
Regardless of opposition concerns, the Arkansas governor is expected to approve the bills. Alexa Henning, a spokeswoman for Sanders, stated in an email that both bills would be signed, further claiming that they add the following:
The governor was the first in the country to expel a Chinese communist-owned company from her state and strongly supports banning foreign adversaries from owning cryptocurrency mines in Arkansas, while protecting rural communities and empowering them to suppress bad actors.
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