Arkansas governor reportedly plans to sign two bills regulating cryptocurrency mining activities

Arkansas Governor Sarah Huckabee Sanders is expected to sign two new bills regulating cryptocurrency mining activities in the state, according to various sources.

State lawmakers passed Senate Bills 78 and 79 on May 1 to strengthen regulations for cryptocurrency miners in the state.

These legislative initiatives directly respond to concerns raised following the passage of Act 851. Act 851 passed the 2023 regular session but faced backlash due to its lack of oversight of cryptocurrency mining activities.

Local residents have reportedly expressed concerns about loud noise and huge water and energy consumption from cryptocurrency mines.

Surprisingly, this bill comes less than a month after the Arkansas Senate approved a resolution introducing legislation that would impose fees on cryptocurrency miners for excessive energy consumption.

Bill

Senate Bill 78 focuses on reducing noise pollution and water consumption by miners. The bill would prohibit foreign companies from owning mining operations in the state and give local governments the power to oversee miners’ activities.

Conversely, Senate Bill 79 would require cryptocurrency miners to secure a license before beginning operations in the state. It proposes establishing a state licensing system overseen by the Energy Department’s Oil and Gas Board.

Notably, both bills contain provisions that would not allow foreign parties in the country to own cryptocurrency mines under federal international arms trafficking regulations.

Representative Andrew Collins, who opposed the bill, expressed concern about the bill’s potential impact on foreign investment. He argued that their scope can inadvertently entangle innocent parties while overlooking undisclosed domestic and foreign entities.

In contrast, Rep. Jeremiah Moore, one of the bill’s sponsors, highlighted the unprecedented growth of the cryptocurrency mining industry in the state and emphasized the need for an appropriate regulatory framework to govern this burgeoning sector.

The Arkansas governor has reportedly signed two bills regulating cryptocurrency mining activities. First appeared on CryptoSlate.