Arkansas Governor, Sarah Huckabee Sanders, has enacted pivotal legislation aimed at regulating crypto mining operations in the state, reinstating local oversight while addressing concerns surrounding noise pollution and foreign ownership.
The bills, Senate Bill 78 and Senate Bill 79, signed into law by Governor Sanders, signify a significant shift in the state’s approach to crypto mining. Sponsored by Sen. Josh Bryant and Sen. Missy Irvin, the legislation represents a response to mounting grievances from residents and officials regarding the burgeoning industry’s impact.
Senate Bill 78, spearheaded by Sen. Bryant, returns regulatory authority to local municipalities, empowering them to enact measures tailored to their communities’ needs. Notably, the law mandates noise-reduction techniques for crypto mines, including liquid or submerged cooling systems and full enclosure of noise-generating equipment.
Furthermore, the bill delineates exemptions for mines located a minimum distance from residential or commercial structures, or situated within designated commercial zones. These exemptions allow for alternative cooling methods, such as passively cooled pre-manufactured containers.
Senate Bill 79, championed by Sen. Irvin, imposes additional requirements by mandating permits from the Oil and Gas Commission for crypto mining operations. Moreover, both bills impose strict prohibitions on ownership by “prohibited foreign parties,” safeguarding against undue influence from countries such as China.
Governor Sanders, in a press conference preceding the bills’ signing, emphasized the significance of local control over crypto-mining facilities, underscoring the state’s commitment to curbing foreign influence and mitigating disruptive effects on communities.
The decision comes amidst mounting concerns over the environmental impact and foreign ownership of crypto mining operations. Notably, one mine in Arkansas County, owned by Jones Digital, LLC, is under scrutiny for potential ties to China, prompting investigations by state authorities.
The legislative measures passed with overwhelming support, reflecting a broad consensus among lawmakers regarding the necessity of regulating this burgeoning industry. The House and Senate endorsed the bills by substantial margins, with votes exceeding 90% in favor.
However, not all proposals found traction in the legislative process. Resolutions advocating for stricter regulations, put forth by Sen. Bryan King, failed to garner sufficient support, highlighting the nuanced debates surrounding crypto mining policy in the state.
In conclusion, the enactment of Senate Bill 78 and Senate Bill 79 marks a significant milestone in Arkansas’s regulatory landscape, balancing the interests of local communities with the imperative of regulating a rapidly evolving industry. As the state navigates the complexities of crypto mining, these measures herald a new era of governance characterized by localized oversight and stringent safeguards against external influence.