Arkansas has enacted a resolution to safeguard the state’s cryptocurrency mining operations.
The Arkansas Data Centers Act of 2023 aims to clarify state regulations regarding digital mining. Sponsored by Representative Rick McClure and Senator Joshua Bryant, the bill was introduced in the House on March 30, 2023.
Since then, the bill has undergone multiple readings and committee stages in both the House and Senate, as well as minor amendments. It is currently awaiting the assets of the governor.
The legislation specifies that Bitcoin mining businesses inside the state have to conform to state tax and commercial norms. If passed, Bitcoin mining will be permitted in Arkansas so long as it does not strain the electrical grid.
Individuals can also mine Bitcoin from their homes and pay the applicable utility fees. Porter added that he expects to attend the signing ceremony with Arkansas Governor Sarah Huckabee Sanders.
The bill recognizes the economic utility of data centers, which create employment and pay taxes. Thus, Bitcoin producers are protected from discriminatory taxes and regulations by a set of rules.
This means that local governments cannot regulate the crypto-mining industry, and businesses that mine digital assets will be able to challenge zoning changes. The Arkansas utility provider is also prohibited from charging miners “unreasonably discriminatory rates.”
In addition, the law defines a number of terms, including digital assets, digital asset mining, node, and digital asset mining enterprise.
Several U.S. states are attempting to regulate mining activities within their borders, as the crypto industry as a whole confronts increased regulatory scrutiny. These states include Montana and Missouri, which have recently passed similar legislation.
However, some state and local governments have adopted a tough stance against the industry, citing environmental concerns and electric grid strain. For instance, New York imposed a moratorium on mining in the state for two years.
Also Read: Blur nemesis OpenSea discontinues OS Pro and Gemesis NFT
