To control the state's Bitcoin mining companies, the Arkansas State House has passed legislation. The State Senate has already approved the measure, which will now be approved by the governor's office.
The Arkansas Data Centers Act of 2023 would impose limitations on Bitcoin miners while also making an effort to stop illegal business practices.
The House and Senate adopted the measure on April 6, according to the records. It was registered on April 7 and brought to the governor's office for approval.
The act aims to make it illegal for local governments to impose restrictions on cryptocurrency mining activities.
The bill suggests that a Bitcoin mining operation may operate in the state if it complies with state laws governing business regulations and tax laws, as well as ordinances governing operations and safety, as well as any guidelines or rates for utility service provided by or on behalf of a public entity, as well as state and federal employment laws.
The law prohibits local governments from passing legislation, such as specific anti-noise laws, zoning regulations, and commercial laws, that directly affects crypto mining businesses. Additionally, the law stipulates that mining corporations may contest zoning changes.
It also recommends that miners pay the proper taxes and levies to the government in recognized forms of currency and conduct their business in a way that doesn't tax the generating or transmission infrastructure of an electric public utility. The law also enables individuals to mine Bitcoin at home in compliance with the applicable utility's rules and fees.
The bill also prohibits charging arbitrarily high charges for crypto-mining customers by Arkansas' public electricity supplier.
The bill aims to recognize the economic benefits of data centers for the state and local communities, including the creation of jobs and tax revenue. It highlights the requirements necessary to protect Bitcoin miners from unjust business taxes and regulations.
It specifies a number of key terms, such as "digital asset," which applies to Bitcoin and other cryptocurrencies. Additionally, it defines "digital asset mining" as the process of using energy to run a computer in order to protect or validate a blockchain network, as well as "digital asset miner" as someone who mines for digital assets.
The measure's passing was praised by the Satoshi Action Fund, which played a significant role in its creation. Following Missouri's resounding 12-0 adoption of a related "Right to Mine" initiative earlier this month, Arkansas made its decision. Crypto mining has generated considerable debate as the market for digital assets grows, with both sides contesting the method.