Arkansas Senate Rejects Bill to Ban Crypto Mining Near Military Bases, Citing National Security Concerns

The Arkansas Senate's City, County, and Local Affairs Committee has rejected a bill that aimed to prevent crypto mining facilities from operating within 30 miles of military bases.

The Arkansas Senate panel has rejected a bill that aimed to prevent crypto mining facilities from operating within 30 miles of military bases. Lawmakers voted against the measure 5-1, effectively stopping it from becoming law. The bill also proposed revoking business permits of existing mining facilities located near military sites, but this provision was also rejected.

The bill was introduced due to concerns that crypto mining facilities near military bases could pose a national security risk. Lawmakers who supported the bill argued that mining operations located close to sensitive military sites, including hospitals and clinics, could compromise security. The bill’s original text stated that digital asset mining presented risks to national security and state security.

The proposal included an emergency clause, meaning it would have taken effect immediately if passed. The bill’s authors justified this urgency by stating that the measure was necessary to protect Arkansas and its residents. However, despite these concerns, the Senate panel ultimately decided not to proceed with the restrictions.

Apart from security risks, crypto mining has also faced criticism for its environmental impact. In April 2022, 23 U.S. lawmakers sent a letter to the Environmental Protection Agency (EPA), raising concerns about whether crypto mining operations fully complied with environmental laws. They questioned whether these facilities violated the Clean Air Act and the Clean Water Act. The lawmakers also highlighted that mining operations consume large amounts of electricity, sparking concerns about sustainability and pollution.

Noise pollution has emerged as another major issue for communities living near crypto mining facilities. In many parts of the U.S., residents have reported complaints about the constant loud humming from mining equipment. A letter to the EPA noted that people living near mining facilities in states like New York, Tennessee, and Georgia experienced significant noise pollution. Some said the noise affected their quality of life.

In October 2024, residents of Granbury, Texas, filed a lawsuit against a mining company called MARA. The lawsuit claimed that excessive noise from the facility caused various health issues, including fatigue, headaches, nausea, hearing loss, memory problems, and psychological distress.

The U.S. government has taken action against crypto mining facilities before. In May 2024, former President Joe Biden ordered the removal of a mining facility near the Francis E. Warren Air Force Base in Wyoming. The facility belonged to MineOne Cloud Computing Investment, a company with Chinese ownership. The Biden administration argued that MineOne’s proximity to a U.S. nuclear missile installation posed a security threat. Officials feared the company could use the facility for surveillance of military activities.

While the Arkansas bill was rejected, similar concerns about foreign-owned mining facilities have been raised in other parts of the country. Lawmakers have debated whether crypto mining companies should be allowed to operate near sensitive locations, particularly when their ownership structures raise national security questions.

Despite these concerns, crypto mining continues to grow in the U.S. President Donald Trump has expressed strong support for Bitcoin mining, stating that all future Bitcoin mining should take place in the country. The U.S. currently accounts for over 40% of global crypto mining.

To address criticism about energy consumption and environmental harm, mining companies have started developing more sustainable technology. At CES 2025, mining hardware manufacturer Canaan unveiled a Bitcoin miner that also functions as a home heater. This aims to make mining operations more energy-efficient and environmentally friendly.