Arkansas Regulates Crypto Mining with New Legislation

Arkansas Introduces New Rules for Crypto Mining Industry

A proposal put forward by Senator Joshua Bryant on March 30th in Arkansas has successfully passed through the state's House of Representatives and Senate. 

The bill will now be forwarded to the governor for their final approval and only then come into force. 

The purpose of this bill is to establish regulations for the Bitcoin mining industry within the state of Arkansas. The proposed guidelines aim to safeguard miners by prohibiting discriminatory regulations and taxes while ensuring that their activities do not impose any undue strain on the state's electric public utility’s generation capabilities or transmission network.

The bill, recognizing the vital economic contribution data centers make to their local communities, stipulates that a digital asset miner must pay any applicable taxes and government fees in acceptable forms of currency. Moreover, the legislation grants crypto miners the same rights as data centers. Under no circumstances may Arkansas impose a different set of requirements on digital asset mining businesses that differ from those governing data centers.

Arkansas’ actions follow a similar initiative by the Montana Senate to protect crypto miners in that state. A bill was passed in late March that seeks to shield miners from taxes on digital assets used for payments and eliminate energy rates discriminating against home crypto miners and digital assets businesses.

In contrast, the state of Texas is taking a different approach. The Senate Committee on Business and Commerce recently passed legislation that would essentially remove incentives for miners operating under the state’s crypto-friendly regulatory environment.

The banning of crypto-mining activities in the state of New York for two years by Governor Kathy Hochul in November 2022 is an even more decisive measure. In addition, on a federal level, a proposed budget by President Joe Biden on March 9th aims to reduce mining activity by subjecting crypto miners in the United States to a 30% tax on electricity costs.

Also, Read - “Step By Step, We Are Working on Crypto Regulation”: Nirmala Sitharaman