Tennessee City Approves Rules for Crypto Mining Sites

The city of Kingsport, Tennessee has approved zoning changes that could allow cryptocurrency mining and data centers to operate locally. The decision was made unanimously by the Board of Mayor and Aldermen during its first reading.

The amended zoning rules outline where crypto mining facilities may be located. They also define operational noise limits. City officials aim to support digital infrastructure growth while protecting residential areas.

Zoning rules for crypto mining operations

Under the new ordinance, cryptocurrency mining is permitted only inside fully enclosed buildings. Facilities must be located at least 152 meters from residential districts. In addition, all operations require approval based on a sound impact study.

The maximum allowed noise level is capped at 60 dBA at the property line. These measures follow complaints filed in other US regions. In Texas, residents previously sued mining companies over excessive noise levels.

City planners noted that earlier zoning laws did not anticipate large-scale digital industries. Officials now expect increased demand from data-driven businesses. The updated rules allow the city to manage such development responsibly.

Impact on Tennessee’s crypto industry

With a population of about 57,000, Kingsport ranks among the top 20 cities in Tennessee. As a result, the decision holds broader significance. Tennessee is already viewed as a crypto-friendly state by mining companies.

In 2024, CleanSpark agreed to acquire seven mining facilities near Knoxville. This highlights the region’s growing role in the Bitcoin mining sector. Updated zoning laws may further attract investment and infrastructure projects.

Proposal for a Tennessee Bitcoin reserve

At the state level, lawmakers are also advancing Bitcoin-related legislation. Representative Jody Barrett introduced the Tennessee Strategic Bitcoin Reserve Act. The bill would allow the state treasurer to invest up to 10% of Tennessee’s general fund in Bitcoin.

It remains unclear whether the proposal will pass the state legislature. If approved, the law could take effect on July 1. This would position Tennessee among the leading US states embracing Bitcoin at the governmental level.

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