Arkansas lawmakers have opened the door to two bills that could restrict crypto mining within the state.
While these bills are yet to evolve into laws, they set the pace for the future. Let’s explore more about this news for Crypto mining.
Arkansas Considers Bills to Regulate Crypto Mining
The Arkansas State House pondered concerns related to crypto mining. This includes noise reduction and the possibility of foreign ownership. And the possible risk of these activities to residential homes.
Both bills would overturn sections of Act 851 of 2023. The sections, among other things, stop local governments from drafting sound laws, especially for crypto miners. The bills also establish new rules. They seek to describe the surge in crypto mining in Arkansas as an “emergency.”
Arkansas House adopts crypto mining resolutions https://t.co/sbGCX3y4VB pic.twitter.com/4RDylF7fO0
— Little Rock Post (@LittleRockPost_) April 17, 2024
One of the bills seeks to enforce noise limits on crypto mining activities. The bill also restricts citizens of nations listed in the International Traffic in Arms Regulations from owning crypto mines in Arkansas. Facilities are required to implement soundproofing. In addition, the bill stops crypto mines from using water to cool their servers.
Concerns about Mining
Crypto miners have dashed to Arkansas in recent years. This is thanks to the state’s cheap electricity and vast natural resources. However, some US states have expressed concerns about the activities of these miners.
Mining involves the use of specialized computers, which are energy-intensive. These devices generate heat. So, they are only cooled by circulating water taken from wells or by using noisy cooling fans.
The US isn’t isolated in its bid to restrict crypto mining. Other countries are considering limiting mining activities due to their dangers. For example, regulators in Paraguay plan to temporarily restrict mining activities. The lawmakers cite concerns about illegal miners affecting electricity distribution.
Interestingly, these concerns about crypto mining come ahead of the US’s major elections. Many expect crypto users to play a role in this election. Already, some voters have expressed bias toward candidates with pro-crypto views.
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