Arkansas Moves to Protect Bitcoin Miners with New Legislation

Arkansas has become the latest U.S. state to propose legislation regulating Bitcoin mining and offering legal protection to companies in the industry. This development follows similar actions taken by Montana and Texas, contrasting with national regulators such as the Securities and Exchange Commission (SEC) that have pursued legal action against crypto companies.

The proposed Data Centers Act of 2023 has passed both the Arkansas House of Representatives and Senate and now awaits the governor’s approval. The bill aims to shield miners from discriminatory regulations and taxes by providing clearer guidelines. Crypto miners would be required to pay applicable taxes and government fees in acceptable forms of currency and operate without straining an electric public utility’s generation capabilities or transmission network.

Under the proposed legislation, crypto miners would have the same rights as data centers, which Arkansas recognizes as valuable contributors to the local economy. Montana also passed a bill in February to offer legal protections to cryptocurrency miners, including prevention of discriminatory electricity rates.

In Texas, the situation is more varied, with a bill introduced on April 4 potentially eliminating some incentives for crypto miners, while a March bill supporting Bitcoin mining is still pending in the House Committee on State Affairs. Meanwhile, national regulators such as the SEC and the Commodity Futures Trading Commission have pursued legal action against crypto trading platforms like Kraken and Binance for allegedly lacking legal approvals for certain services.