Several counties in the United States state of Arkansas are hurrying to pass emergency legislation to control noise and other activities related to cryptocurrency mining before a new state law comes into effect on August 1, according to local media reports.
Arkansas state law will come into effect on August 1
The upcoming state law aims to subject crypto mining facilities to the same regulations applied to data centers, providing guidelines for miners and safeguarding them from discriminatory regulations and taxes. However, residents of Arkansas had limited time for public discussion and review of the new legislation, as it was proposed, debated in committees, and swiftly passed by legislators within a week, from March 30 to April 7. State Representative Rick McClure, the author of the bill, stated that there were no objections voiced against the bill during committee discussions or legislative sessions.
Among the crypto mining companies operating in Arkansas are Green Digital, GMI Computing, United BitEngine, and Cryptic Farms. The urgency to pass additional regulations stems from concerns over excessive noise generated by crypto mining operations, which operate around the clock. Kris Kendrick, a justice of the peace on Faulkner County’s Quorum Court, expressed concerns about the lack of consideration for neighbors and the constant noise caused by the mining activities during a July meeting.
Following the passage of the state law, the Association of Arkansas Counties developed a model ordinance that counties can adopt before the law takes effect. As a result, over a dozen counties have already passed noise ordinances targeting data centers since June. Justice of the Peace Maree Coats emphasized that the noise issue extends beyond minor disturbances, as residents are forced to endure the constant sound 24/7, affecting their quality of life and well-being.
While the new legislation does not entirely prohibit county regulations, it does prevent local governments from discriminating against crypto-mining facilities or imposing overly restrictive decibel levels, except for limits set for general sound pollution. Counties are also prohibited from rezoning areas with the intent or effect of discriminating against digital mining operations.
The new law will regulate mining in the state
As the cryptocurrency industry continues to grow, debates around regulations and their impact on local communities have become more prevalent. The clash between technological advancements and the welfare of residents poses a challenge for lawmakers in finding a balanced approach to address concerns while encouraging innovation.
The rush to pass emergency legislation highlights the importance of local governance in managing the evolving landscape of crypto mining. Counties are seeking to strike a balance between supporting the growth of this emerging industry and addressing the valid concerns raised by citizens affected by its operations. As the August 1 deadline approaches, Arkansas counties are actively working to implement the new regulations to effectively manage crypto mining activities while respecting the rights and well-being of their residents.
The debate over noise regulations is just one aspect of the broader discussion surrounding the cryptocurrency industry’s impact on local communities and the need for well-crafted policies to navigate this uncharted territory. While the new state law brings some clarity to the regulation of crypto mining facilities, it also opens the door to future discussions on the ever-evolving crypto landscape.
As the industry continues to mature, stakeholders at the state and local levels will have ongoing opportunities to collaborate and find solutions that foster innovation and responsible growth in the crypto sector while addressing the legitimate concerns of citizens. Finding the right balance will be crucial in ensuring that Arkansas and other states can embrace the potential benefits of cryptocurrency while maintaining the well-being and tranquility of their communities.
