Nikolas Sargeant
Arkansas lawmakers have introduced a new bill, Senate Bill 60, which seeks to ban cryptocurrency mining operations within a 30-mile radius of military bases, camps, hospitals, clinics, and arsenals. The bill, introduced on January 15 by Senator Ricky Hill and House Speaker Brian Evans, is designed to amend the state's Data Centers Act of 2023, addressing national security and noise concerns related to crypto mining operations. The proposed legislation specifically impacts the construction of a mining facility in Cabot, Arkansas, near Little Rock Air Force Base.
While the bill includes a grandfather clause for existing operations, the move follows similar national security measures taken by the Biden administration in 2023. Local concerns about noise pollution from crypto mining have sparked further debate, with some opposing the bill, citing its potential to make Arkansas the first state with such restrictions.
Global Crypto Mining Trends: U.S. Expansion and Russian Crackdown
As Arkansas looks to limit crypto mining activities, the global landscape reflects both growth and regulatory challenges. In the United States, firms are expanding their operations despite the regulatory environment. For example, Abu Dhabi-listed Phoenix Group recently launched a 50 MW crypto mining facility in North Dakota, adding 2.7 exahashes to its mining capacity. This expansion is part of a broader U.S. strategy, following the opening of a similar-sized facility in South Carolina.
On the other hand, Russia has moved in the opposite direction, implementing a six-year ban on cryptocurrency mining in 10 regions, including Dagestan, North Ossetia, and Chechnya, from January 2024 until March 2031. This decision is largely driven by concerns over the increasing energy demands placed on the country's power grid by crypto miners. Additionally, temporary mining bans could be enacted during peak energy demand periods, further restricting crypto mining activities across the nation.
