Arkansas lawmakers are pushing a new bill to restrict crypto mining operations near military bases, citing security concerns.
As cryptocurrency adoption grows across the United States, mining companies are rapidly expanding their operations to capitalize on the digital asset boom. These facilities, particularly those mining Bitcoin BTC $84 431 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $9.55 B , rely on powerful computing systems to solve complex cryptographic puzzles, verify transactions, and secure the network.
However, this process demands significant electricity, raising concerns among regulators and lawmakers about its impact on local power grids and national security.
In response, Arkansas legislators have introduced a new bill aimed at restricting crypto mining operations near military installations, citing potential risks associated with energy consumption and security.
Arkansas Bill Seeks to Amend Data Centers Act
The proposed legislation, Senate Bill 60 (SB 60), was introduced by Senator Ricky Hill and House Speaker Brian Evans. It seeks to amend the Arkansas Data Centers Act of 2023 by prohibiting crypto mining facilities from operating within a 30-mile radius of military bases. It also extends to military camps, hospitals, clinics, and arsenals within the state.
Despite the restrictions, the proposed law includes a clause allowing mining facilities that were fully built and operational before December 31, 2023, to continue their activities. This provision aims to balance regulatory measures while avoiding disruptions to existing businesses.
The bill was largely motivated by recent developments in Cabot, Arkansas, where Interstate Holdings, a real estate investment firm based in Florida, began constructing a cryptocurrency mining facility near the Little Rock Air Force Base.
The site, located less than five miles from the airbase, has sparked concerns among local officials and residents, who fear potential threats to national security and critical infrastructure.
Expressing these concerns, Senator Hill questioned the facility’s location, stating:
“Why did they pick this facility that’s less than five miles away from our air base? This is a national security concern.”
Cabot Mayor Ken Kincade also shared the same sentiment, adding that crypto-mining facilities constitute noise pollution.
“These centres cause loud noise disturbances and pollution that negatively affect our people, pets, wild animals, nature, and overall well-being,” he said.
Not the First
Meanwhile, this is not the first instance of Arkansas lawmakers introducing legislation to oversee crypto mining operations within the state. In May 2024, the Arkansas House of Representatives put forward two new bills aimed at restricting certain activities related to digital asset mining in the region.
One of the proposed measures, Bill 78, enforces noise limitations on crypto mining facilities, regulates water usage for cooling, bans foreign ownership of mining operations, and restores local government authority over their regulation.
Meanwhile, the second proposal, Senate Bill 79, establishes a state licensing and regulatory framework, which is to be supervised by the Oil and Gas Commission under the Department of Energy and Environment.
At the time, the Associated Press reported that the bills were advancing to Governor Sarah Huckabee Sanders’ desk, with her office stating that she intended to sign them into law.
next