In a recent move, the state of Arkansas in the US is witnessing growing opposition to the recently passed “Right to Mine” law (Act 851). Crypto mining has been a talk among the regulators and different states had respective responses to it.
According to local media reports, the Arkansas authorities is increasing resistance to legalising mining. The report highlight that the growing opposition are focused on concerned around loosened restrictions on commercial cryptocurrency mining.
While there is an increasing resistance, large, electricity-intensive crypto mines have entered Arkansas after the new law passed. In April, Arkansas became the first state to pass the ‘Right to Mine’ Bitcoin bill in both the House and Senate.
The “Right to Mine” law or Act 851 (HB 1799), limits city governments’ ability to regulate the crypto mines, appearing to limit ordinances towns can enact to residential crypto mining—while it is primarily the commercial crypto mining operations that are generating local outcry. The bill has sparked controversy for limiting the authority of city governments to regulate crypto mines. Therefore, it takes away their ability to enforce ordinances related to local operations.
Among the lawmakers, Arkansas Senator Bryan King (Republican) from District 28 has criticized the bill’s hasty introduction during the 2023 legislative session. Reportedly, Senator King is also set to introduce another bill to counter the contentious “Right to Mine” law.
Notably, residents have also reported their opposition to the legislation voicing concerns about the strain that increased noise levels may put on city life while impacting the power grid and the environment. Additionally, sources reveal that the Green Digital LLC is the organization pushing for the proposed crypto mines but it is partially owned by the Chinese Communist Party.
According to reports, Vilonia and Harrison, cities in Arkansas, have successfully resisted attempts to build crypto-mining operations inside their city limits.
Responding to the growing opposition, the bill’s sponsor, Senator Joshua Bryant (Republican), justified the goal as defending property rights and preventing prejudice towards crypto entrepreneurs. He briefed media that crypto miners are residents of Arkansas who are putting money into the state’s infrastructure, stabilizing utility costs, and supporting the local economy.
Furthermore, he highlighted 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.
Simultaneously, there has been an increasing resistance against rising electricity rates n the United States. This, in turn, has affected Bitcoin miners’ profitability as the energy-intensive process of mining Bitcoin requires substantial electricity, and electricity costs vary across states.
Overall, the states in the US have very different approaches when it comes to crypto mining. On one hand, while New York banned mining activities for two years, several states in the US have shown intentions of protecting miners via “Right to Mine” bills.
In February, the Montana Senate passed a historic bill to help struggling crypto miners from discrimination against mining operations. Prior to this, the Mississippi Senate passed the “Right to Mine” bill which is to protect Bitcoin miners from discrimination and recognizes the potential of the activity to drive economic growth and stabilize the energy grid.
Additionally, on the national level, US lawmakers also involved in intense discussions regarding crypto mining tax. After the discussions, lawmakers celebrated the blocking of the much-criticized Digital Asset Mining Energy (DAME) excise tax, which proposed a 30% mining tax.