Arkansas Crypto Mining Law Under Review, Potential Amendments Examined

Arkansas is reconsidering aspects of its 2022 crypto-mining law (Act 851) due to concerns over local government regulations and the establishment of crypto mining sites. Act 851 aimed to limit local control over such facilities, but community concerns and the Attorney General's ongoing investigation into potential foreign ownership of these sites have prompted a study to evaluate potential amendments to the law in 2025.

Arkansas Crypto-Mining Law Under Scrutiny, Amendments Considered

LITTLE ROCK, Ark. (AP) - Arkansas lawmakers are revisiting provisions of a year-old law that regulates cryptocurrency mining in the state, following concerns raised by communities and government officials.

Act 851, which was passed in 2022, was intended to limit the authority of local governments to impose regulations on crypto mining operations. However, opponents argued that the law has hindered efforts to address noise and other negative impacts associated with these facilities.

"What the bill was, was really kind of a preemption bill that says hey local control exists," said Sen. Joshua Bryant (R-Rogers), the sponsor of Act 851. "Once they're up and operated, you can't just back down and shut them down."

Crypto mining, a process that involves solving complex computational problems to verify cryptocurrency transactions, requires significant amounts of energy and generates substantial heat and noise. Since the passage of Act 851, communities throughout Arkansas have expressed concerns about the potential environmental and nuisance impacts of crypto mining sites.

"By that time, local government had already let them in and so Act 851 would provide those same protections for bad actors," Bryant acknowledged, referring to the lack of due process that some local governments allegedly provided to crypto mining businesses before approving their operations.

In response to these concerns, the Arkansas General Assembly has authorized a study to examine potential amendments to Act 851. The study, which is expected to be completed by 2025, will focus on striking a balance between protecting the rights of responsible crypto mining operators and safeguarding the interests of local communities.

Attorney General Tim Griffin has also been investigating possible foreign interference in Arkansas' crypto mining industry. However, no confirmed cases of foreign ownership of crypto mining facilities in the state have been identified to date.

"The changes to the law following the study would likely come in 2025 through some amendments," Bryant said.

The revision of Act 851 is a complex and multifaceted issue that involves balancing the economic benefits of crypto mining with the potential negative impacts on communities and the environment. The upcoming study will provide lawmakers with valuable information as they work to craft amendments that address these concerns and strike an appropriate balance between the rights of businesses and the well-being of residents.