The US state of Arkansas is seeing growing opposition to the recently passed “Right to Mine” law (Act 851). Local reports highlight that loosened restrictions on commercial cryptocurrency mining have raised concerns.
Meanwhile, large, electricity-intensive crypto mines have entered Arkansas after the new law.
Crypto Mining Concerns in Arkansas
The legislation is controversial as it limits the authority of city governments to regulate crypto mines. Therefore, it takes away their ability to enforce ordinances related to local operations.
Arkansas Senator Bryan King (R) from District 28 has criticized the bill’s hasty introduction during the 2023 legislative session. Senator King is reportedly set to introduce another bill to repeal the contentious “Right to Mine” law.
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According to reports, residents are also concerned about the strain that increased noise levels may put on city life while impacting the power grid and the environment. Additionally, per reports, Green Digital LLC is the organization pushing for the proposed crypto mines. But, it is partially owned by the Chinese Communist Party.
As per reports, Vilonia and Harrison have successfully resisted attempts to build crypto-mining operations inside their city limits.
Defense to the Mining Bill
The bill’s sponsor, Senator Joshua Bryant (R), justified its goal of defending property rights and preventing prejudice towards crypto entrepreneurs. Bryant told the paper that crypto miners are residents of Arkansas who are putting money into the state’s infrastructure, stabilizing utility costs, and supporting the local economy.
Bryant notes that as long as crypto-mining facilities are treated at par with other data centers, the law gives local governments the right to pass ordinances.
Amid the debate and discussion, the “Right to Mine” law will take effect next month. Local reports note that Arkansas houses approximately ten crypto mines.
Meanwhile, there has been an outcry against rising electricity rates in the United States as a whole. This, in turn, has impacted Bitcoin miners’ profitability. The energy-intensive process of mining Bitcoin requires substantial electricity, and electricity costs vary across states.
BeInCrypto previously reported that New Mexico became the most profitable state for Bitcoin mining in Q1 with affordable electricity prices.
In May, the Council of Economic Advisers proposed a 30% DAME tax on crypto mining to address environmental concerns.
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