A law to protect Bitcoin mining in the state of Arkansas has already been approved by the Senate and House of Representatives of Arkansas and sent to the governor. The Arkansas Data Centers Act of 2023, as it is known, seeks to clarify the rules governing digital mining in the state.
Rep. Rick McClure and Sen. Joshua Bryant are believed to have sponsored the aforementioned bill, which started in the House and was first read on March 30, 2023. Since then, the bill has been somewhat changed and has gone through several readings and committee stages in the House and Senate. The law is currently awaiting the governor’s assets.
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The Bitcoin Mining Bill of Arkansas
The aforementioned measure suggests that in order to operate in the state, bitcoin mining firms must abide by state tax and commercial regulations. As long as they don’t put undue strain on the electrical system, miners are now free to mine Bitcoin in Arkansas as the legislation has already been enacted.
Additionally, anybody can now mine Bitcoin at home by paying the appropriate utility fees. The CEO and co-founder of Satoshi Action Fund tweeted in response to the announcement from Arkansas that their state had “pulled off a surprise victory and become the first in the nation to pass the ‘Right to Mine’ #Bitcoin bill in both the House and Senate.”
The aforementioned bill also acknowledged the economic relevance of data centers as employers and taxpayers. It’s also important to note that restrictions have been put in place to protect Bitcoin miners from unfair taxes and regulations. In essence, this meant that local governments couldn’t pass laws that specifically target the cryptocurrency mining sector.
Businesses that mine digital assets will also be entitled to contest zoning changes. A number of concepts, including digital assets, digital asset mining, node, and digital asset mining business, have been defined in detail by the aforementioned bill.
Bitcoin Mining Regulation in Different States
Several U.S. states are attempting to control mining operations within their borders amid the rising regulatory scrutiny of the cryptocurrency business. These states include Montana and Missouri, both of which recently approved legislation of a like nature.
On the other hand, several municipal and state governments have gravitated toward adopting a tough stance on the sector, citing issues with the environment and the strain on the power grid. This includes New York, which has banned mining in the state for a period of two years.
Others, including Buncombe County in North Carolina, are thinking about imposing limitations on miners. Texas also sought to eliminate incentives for cryptocurrency miners, and the Senate is presently considering the bill.