The Arkansas House was granted permission by a legislative panel on Tuesday to deliberate on the possibility of introducing bills to regulate cryptocurrency mining during the fiscal session.

The House Select Committee on Rules endorsed eight resolutions aimed at modifying the Arkansas Data Centers Act of 2023, which had previously restricted the state and local governments from overseeing crypto mining activities with bipartisan approval.

Cryptocurrency mines, which consist of large clusters of computers used for mining digital currency, are frequently situated in rural areas due to their space requirements. These operations demand substantial energy consumption and water for cooling the computer systems.

Republican Senator Bryan King from Green Forest, who is spearheading the initiative to amend the legislation in the Senate, clarified that the objective is not to prohibit crypto mines. Instead, King emphasized the importance of initiating discussions and addressing concerns raised by Arkansas residents.

King highlighted the challenges faced by small towns and communities in contesting against billion-dollar corporations in federal court. He stressed the necessity for an open dialogue and a platform for debate on the issue without incurring additional expenses that would necessitate a special session before the next legislative session.

The mention of a special session by King alluded to the restrictions imposed on lawmakers regarding non-budgetary bills during the ongoing fiscal session. Non-budget-related legislation can be introduced if both the House and Senate pass resolutions with a two-thirds majority vote, requiring at least 24 Senate votes and 67 House votes.

Concerns have been raised by officials regarding crypto mines in DeWitt and near Greenbrier, particularly focusing on foreign ownership and potential national security risks posed by these operations. Residents in the Greenbrier area have even resorted to legal action due to excessive noise levels emanating from a nearby crypto mine.

During the committee meeting, DeWitt resident Jackie Johnson expressed apprehensions about the impact of mining activities on her community and commended lawmakers for initiating discussions on this critical issue.

In a separate development, the Arkansas Senate approved seven prospective bills to regulate cryptocurrency mines. Senator King represented Rep. Josh Miller, R-Heber Springs, who introduced six House resolutions, with Rep. Jon Eubanks, R-Paris, being the sole dissenter on five of Miller’s proposals.

One of Miller’s resolutions, HR 1015, which seeks to restrict certain foreign nationals from owning or investing in a digital asset mining business in Arkansas, garnered unanimous support from the committee. Additionally, resolutions put forth by Rep. Rick McClure, R-Malvern, and Rep. Jeremiah Moore, R-Clarendon, also received unanimous approval.

Senate President Pro Tempore Bart Hester indicated that the House would deliberate on the resolutions on the following day, with the Senate prepared to reconvene if any resolutions are passed by the House. The Arkansas Senate had previously paved the way for crypto-related legislation by endorsing resolutions in recent sessions.

Both the Senate and House sessions are scheduled to commence at 1 p.m. on Wednesday, demonstrating a concerted effort by lawmakers to address the regulatory framework surrounding cryptocurrency mining activities.

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