State Moves Closer to Enforcing Cryptocurrency Mining Rules
The Joint Budget Committee’s Administrative Rule Review Subcommittee has concluded its assessment of the Arkansas Oil and Gas Commission’s proposed regulations governing cryptocurrency mining operations within the state.
Following its review on Wednesday, the subcommittee has recommended that the Joint Budget Committee examine the proposed rules, a crucial step toward regulatory implementation.
The Arkansas Oil and Gas Commission, which is tasked with enforcing these new regulations, initially approved the framework on January 28. The rules come in response to concerns raised by Arkansans regarding the permitting process, noise levels, and foreign ownership of cryptocurrency mining facilities.
Legislative Response to Crypto Mining Concerns
During the 2024 fiscal session, state lawmakers and Governor Sarah Huckabee Sanders enacted Act 173 and Act 174 to address growing public concerns over crypto mining operations. These legislative measures amended the Arkansas Data Center Act of 2023, which had previously restricted local governments from enacting ordinances targeting cryptocurrency mining facilities.
Initially, the 2023 legislation sought to provide a broad framework for the industry. However, in light of increasing complaints about the disruptive impact of mining operations, lawmakers opted for a more stringent approach. The newly enacted Act 174 of 2024 mandated that the Arkansas Oil and Gas Commission establish industry regulations, a directive supported by the Bureau of Legislative Research.
Regulatory Oversight and Future Steps
With the subcommittee’s review now complete, the focus shifts to the Joint Budget Committee, which will determine the next steps for implementing the proposed rules. If approved, these regulations will provide a more structured approach to managing cryptocurrency mining activities across Arkansas, ensuring compliance with noise restrictions and ownership transparency.
The move underscores the state’s commitment to balancing economic opportunities in the growing crypto industry with the interests of local communities, many of which have voiced concerns about unregulated mining operations.
