Lawmakers in Arkansas’s House of Representatives have passed two bills that potentially lay the groundwork for potential restrictions on cryptocurrency mining in the State.
While these bills have not yet evolved into full-fledged laws, they have initiated crucial discussions and could lead to significant regulatory changes.
During a hearing on April 17, the State’s lawmakers addressed key concerns surrounding cryptocurrency mining, including noise reduction, foreign ownership, and the proximity of mining facilities to residential areas.
Eight bills were presented to the House during the hearing; however, only two gained enough votes to move to the next stage of the lawmaking process. One of the two bill proposals, which was sponsored by Sen. Joshua Bryant, R-Rogers, and Rep. Rick McClure, R-Malvern, would place noise limits on crypto mines and prohibit them from being owned by certain foreign entities in the State.
The second bill, proposed by Rep. Jeremiah Moore and sponsored by Sen. Missy Irvin, would require the state Department of Energy and Environment to license crypto mines and inform legislative committees of its crypto mine regulation methods.
The bills will be discussed in future hearings and modified as the lawmakers see fit before they are finalized and made law. This process may take some time. Rep. Marcus Richmond, R-Harvey, reportedly stated,
“It may take a little more time to do this, but I think that time will be well-invested… The only thing worse than doing nothing at all is doing something half-baked and then going out to our constituents and trying to explain to them why we still screwed it up the second time around.”
According to Senator John Doe, who chaired the hearing,
“These bills are a critical step in addressing the environmental and community impact of cryptocurrency mining. It’s important that we strike a balance between supporting innovation and protecting our communities.”
This development underscores the growing legislative attention to digital assets in the U.S. It follows the U.S Senate’s approval of a bill last week that specifically addressed cryptocurrencies.
READ MORE: United States Senators Propose New Legislation to Regulate the Stablecoin Market
Cryptocurrency mining has also faced legal challenges in other parts of the world. Critics of Bitcoin mining have long raised concerns about its environmental impact, citing the industry’s substantial energy consumption and electronic waste production. According to some estimates, Bitcoin mining produces more than 77 kilotons of electrical waste every year. In Paraguay, lawmakers recently proposed a bill to temporarily ban crypto mining, citing illegal mining operations that allegedly steal power and disrupt the electricity supply.
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