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Arkansas Lawmakers Target Crypto Mining Near Military Bases: National Security Or Overreach?

Arkansas Lawmakers Target Crypto Mining Near Military Bases: National Security Or Overreach?

Samuel Edyme
by Samuel Edyme
7 months ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A new bill has now being introduced by Arkansas legislators. This bill seeks to restrict cryptocurrency mining operations within 30 miles of military installations across the region.

The Senate Bill 60 (SB 60), brought forward on Wednesday by Senator Ricky Hill and House Speaker Brian Evans, aims to modify the Arkansas Data Centers Act of 2023 to incorporate this limitation.

The proposed measure targets various military-related sites, such as bases, hospitals, camps, clinics, and arsenals. However, facilities that were completed and operational prior to December 31, 2024, would be exempted from the restrictions under a grandfather clause.

Related Reading: Crypto Regulation Takes Center Stage: Senator Tim Scott Outlines Priorities For 119th Congress

Noise And Security Concerns Drive Legislation

It is worth noting that the bill has sparked discussions about the potential impact on existing and planned crypto mining operations in Arkansas. Among the facilities affected is a crypto mining site under construction in Lonoke County near the Little Rock Air Force Base in Cabot.

The site is owned by Florida-based real estate investment firm Interstate Holdings. Concerns raised by local residents and officials regarding noise pollution and national security have been cited as key reasons for the proposed legislation.

Particularly, Cabot Mayor Ken Kincade and Senator Hill have been vocal about the issues associated with crypto mining operations near military facilities. In December, Kincade pointed to noise pollution as a “significant problem,” noting complaints from residents regarding disturbances caused by the facilities.

He also highlighted the broader environmental impact, emphasizing that such operations could negatively affect the well-being of people, pets, and wildlife in the surrounding areas.

Senator Hill, on the other hand, expressed concerns about the proximity of mining operations to military installations, citing potential risks to national security. “Why did they pick this facility that’s less than five miles away from our air base? This is a national security concern,” Hill stated.

The legislation appears to align with a broader national trend, echoing an order from the Biden administration in May 2024, which restricted a China-linked crypto mining firm from operating anywhere close to a military base in Wyoming—a state in the west central US.

Industry Response And Regulatory Challenges

The bill has faced criticism from Interstate Holdings, with Vice President Dustin Curtis voicing his opposition. Curtis argued that the proposed legislation would make Arkansas the only state in the US with such restrictions, noting that the Cabot facility complies with all state and federal regulations concerning noise, environmental impact, and security.

He further stated that the noise levels from the facility would be lower than those from the nearby state highway, challenging the claims of excessive noise pollution.

Related Reading: Gensler Calls Bitcoin ‘Highly Speculative’ Yet In-demand: 7 Billion Want To Trade It

Notably, the proposed legislation raises questions about balancing economic development with community and national security concerns. Crypto mining operations are energy-intensive and often criticized for their environmental and social impacts.

However, they also represent significant economic opportunities for local communities. Arkansas’s decision could set a precedent for other states considering similar restrictions, potentially reshaping the regulatory landscape for crypto mining across the US.

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Samuel Edyme

Samuel Edyme

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Edyme is a writer, a content writer that specialises in writing about the crypto realm. Asides Bitcoinist and NewsBTC, Edyme's writing has been featured in top sites such as Blockchain.News, CoinMonk, Blockchain Reporter, Bitcoin Insider among others.

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