- A Senate committee in Arkansas has approved two bills to regulate crypto mining in the state
- The bills, introduced by two republican penalties, seek to address the noise from mines, prevent foreign ownership, and reform licensing, among other solutions
Two bills to regulate cryptocurrency mining have been approved by an Arkansas Senate Committee. The bills, proposing tighter regulations on crypto mining operations, were the only ones authorized by the Arkansas House of Representatives on Wednesday out of eight proposed bills.
The bills were introduced by Republican Senators Joshua Bryant and Missy Irvin alongside six other bills from other lawmakers seeking to amend Act 851 or the Arkansas Data Centers Act. The bi-partisan act sponsored by Rep. Rick McClure and Senator J. Bryant, was allegedly passed last year without much discussion within only eight days of introduction and would later arouse many complaints.
The act, which limited local governments’ ability to regulate cryptocurrency mines, needed urgent reforms after residents raised complaints about the noise, health risks, and environmental pollution caused by mining operations in the state. In addition, people have voiced their concerns over the alarming energy consumption of mines and the massive influx of foreign mining companies into local US communities.
Senator Bryan’s bill, Senate Bill 78, will among other purposes, “create requirements for noise reduction in the operation of a digital asset mining business.” It will also clarify “the ability of an Arkansas resident to engage in home digital asset mining”, and “prohibit foreign-party-controlled ownership of a digital asset mining business in Arkansas.”
Bryan’s bill ruled out and amended several laws that digital asset mining businesses were to comply with in Act 851. The new bill proposes that crypto mining companies comply with every state ordinance instead of just ordinances “concerning operations and safety.” Miners must also comply with all state and federal laws instead of just “employment laws.”
Addressing the issue of noise pollution, the bill mandates digital asset mining businesses to “apply noise reduction techniques” such as using liquid or submerged cooling and fully enclosing the envelope from where noise emanates directly from a mining business. Miners will enclose all sides of the envelope with industry-standard noise-proof material that will reduce noise to acceptable levels.
In addition to noise-proof covering, miners would seek approval from the local government to locate or relocate their facilities to at least 2,000 feet from the nearest residential or commercial structure in an area designated for industrial use.
Senator Irvin’s Senate Bill 79 enabled local governments to “enact or adopt an ordinance, policy, or action that limits the sound decibels generated from home digital asset mining other than the limits set for sound pollution generally.” The bill also capped the sound emitted by a crypto mining business at 60 decibels and mandated crypto mining businesses to use soundproofing enclosures to ensure that the sound emanating from their facilities doesn’t exceed 40 decibels.
The recent legislation on digital asset mining in Arkansas aligns with continuous lawsuits by residents against mining companies – with sound pollution being the most stressed challenge. Security concerns have also intensified over the heightened influx of Chinese Bitcoin mines across the United States. The Arkansas Senate Committee will sit again next Tuesday to hear more public comments on the proposed policies.