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- Arkansas has approved a bill to protect Bitcoin mining activities within the state.
- The bill will protect miners from discriminatory taxes and regulations.
- Many US states have taken measures to regulate mining activities in their jurisdictions.
The Arkansas State Assembly, consisting of the Senate and the House of Representatives, has approved a bill to protect Bitcoin mining within the state and sent it to the governor.
The 2023 Arkansas Data Centers Act aims to clarify digital mining regulations within the state. The bill was drafted by Representative Rick McClure and Senator Joshua Bryant and was first read on March 30, 2023.
Since then, the bill has been read several times, passed through committee stages, and slightly modified. It is now awaiting the governor’s approval.
Arkansas’ Bitcoin Mining Law
According to the bill, Bitcoin mining activities must comply with state laws and operate within the state’s tax and operational guidelines. Miners will be free to mine Bitcoin in Arkansas as long as they do not create stress on the electrical grid.
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Individuals can also mine Bitcoin at home and pay appropriate service fees.
Dennis Porter, CEO and Co-Founder of the non-profit organization Satoshi Action Fund, said in a tweet regarding Arkansas’ move:
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The state of Arkansas scored a surprise victory as the first state to pass the ‘Bitcoin Mining Right’ law in both the House and Senate.
Porter added that he hoped to attend the signing ceremony with Arkansas Governor Sarah Huckabee Sanders.
The bill recognizes the economic value of data centers due to job creation and tax payments. Therefore, guidelines have been established to prevent discriminatory taxes and regulations for Bitcoin miners.
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This means that local governments cannot create regulations for the crypto mining industry, and digital asset mining businesses can challenge zoning changes. The Arkansas public utility provider cannot apply “unreasonable discriminatory rates” to miners.
The bill also defines several terms such as digital assets, digital asset mining, nodes, and digital asset mining businesses.
US States and Bitcoin Mining Regulation
As the broad crypto industry faces increasing regulatory scrutiny, many US states are attempting to regulate mining activities in their jurisdictions. Examples of states that have recently passed similar laws include Montana and Missouri.
However, some states and local governments are taking a tough stance on the industry due to environmental concerns and stress on the electrical grid. For example, a two-year moratorium was imposed on mining in New York state.
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Meanwhile, others like Buncombe County in North Carolina are considering restrictions on miners. Texas is also reportedly trying to remove incentives for crypto miners, and the bill is currently in the Senate.
Inability to Deny
COINOTAG is committed to providing unbiased, transparent reporting in accordance with the Trust Project guidelines. This news article aims to provide accurate and timely information. However, readers are advised to independently verify the facts and consult with a professional before making any decisions based on this content.
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