A bill has been introduced in the Arkansas state senate that seeks to ban digital-asset mining operations within a 30-mile radius of U.S. military installations.
Senate Bill 60, co-sponsored by Senator Ricky Hill and House Speaker Brian Evans, was filed on January 15 to amend the Arkansas Data Centers Act of 2023. It addresses a cryptocurrency mining facility near Cabot, close to Little Rock Air Force Base. Owned by Interstate Holdings and led by Steve Landers Jr., the facility faces opposition from local officials and residents, including concerns local officials and residents, including concerns from Cabot Mayor Ken Kincade and Lonoke County about noise pollution and national security risks.
“These centers cause loud noise disturbances and pollution that produce negative effects on our people, pets, wild animals, nature and overall well-being,”
Kincade stated
Interstate Holdings has defended its operations by highlighting compliance with regulations. Vice President Dustin Curtis stated that the Cabot mine is not a threat, produces minimal noise, and does not overload the power grid. This bill would make Arkansas the only state in America with anything like this,” he said. “No one from the governor’s or attorney general’s office asked for this.” He added that the facility utilizes excess power from Entergy Arkansas and is designed to shut down during periods of grid strain.
Landers criticized proposed legislation for contradicting President-elect Trump’s expected initiatives to promote Bitcoin adoption, including plans for a U.S. reserve. The Cabot mine experienced delays due to a cease-and-desist order but resumed operations after complying with FEMA regulations. The bill is currently assigned to a committee and will be reviewed later this week.
The debate surrounding the Cabot facility is linked to a national issue. Last year, the Biden administration ordered the closure of a Bitcoin mining operation in Wyoming due to connections with Chinese nationals. The U.S. Treasury Department also imposed stricter regulations on foreign-owned properties near military sites because of security concerns.
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