Arkansas Senator Ricky Hill has introduced legislation that aims to prohibit cryptocurrency mining operations within a 30-mile radius of U.S. military installations, citing national security concerns. Filed on Tuesday, Senate Bill 60 is a preemptive effort to address potential risks posed by digital asset mining operations near sensitive military sites.
Describing crypto mines as a “national security issue,” Hill said, “This isn’t just about the city of Cabot; this is about the state of Arkansas and our military facilities.” The proposed legislation would apply to all bases, hospitals, training sites, and housing operated by the U.S. military, including National Guard facilities. However, the bill exempts crypto mines already operating before December 31, 2024, unless there is a change in ownership.
Broad Implications for Crypto Mining in Arkansas
If passed, the bill could significantly impact future crypto mining operations in the state, particularly near Fort Smith—home to Fort Chaffee Joint Maneuver Training Center and Ebbing Air National Guard Base—and the Little Rock metropolitan area, which hosts Little Rock Air Force Base and Camp Robinson. Other affected locations would include Pine Bluff Arsenal and other military facilities.
Steve Landers Jr., president of Interstate Holdings Blockchain Arkansas, criticized the bill, stating it unfairly targets his company’s mining operation under construction in Cabot. “He is simply attacking our mine because it’s in his county,” Landers said, referring to Senator Hill. The crypto mine in question is located just outside Cabot city limits and roughly five miles from Little Rock Air Force Base.
Landers defended the operation, explaining that the computers used for mining are relatively unsophisticated. “It only serves to verify transactions on the blockchain. That’s it. It doesn’t have Windows, it doesn’t have Safari, it doesn’t have any kind of functionality outside of verifying specific transactions on the blockchain,” he said.
Local Concerns Over Noise and Energy Consumption
Crypto mining involves solving complex equations using banks of computers that require constant cooling, often resulting in noise. Landers assured that his facility would implement sound mitigation measures to minimize disruption to nearby residents. Nonetheless, local officials, including Hill, Speaker Brian Evans, and Cabot Mayor Ken Kincade, have expressed concerns over the mine’s proximity to Little Rock Air Force Base, its potential noise pollution, and its impact on the local power grid.
At a December news conference, Kincade stated, “Residents of Cabot will legally do anything within our power to remove this from our community.”
Legislative and Legal Challenges
The push for stricter regulations on crypto mining comes after Arkansas lawmakers passed legislation in 2023 prohibiting local governments from regulating such operations. However, following complaints about noise and other disturbances, the law was amended to allow local governments to enact sound ordinances and regulate digital asset mining.
Despite these changes, the law has faced legal challenges. Crypto mine owners filed a lawsuit, prompting Chief U.S. District Judge Kristine G. Baker to issue a preliminary injunction preventing the state from enforcing it.
As debates over Senate Bill 60 continue, the tension between the growing cryptocurrency industry and concerns over national security, local disruption, and energy usage remains at the forefront of Arkansas’ legislative agenda.