Arkansas has taken the next step to approve a bill that protects the right to mine Bitcoin, which is now heading to the governor’s desk.
Arkansas State House has passed away a bill aimed at regulating the Bitcoin mining industry in the state. Already passed by the state Senate, the bill is now heading to the governor’s office for approval. The Arkansas Data Centers Act of 2023 would create guidelines for bitcoin miners and aim to prevent fraudulent business practices.
The bill proposes that a Bitcoin mining business can operate in the state if it follows state laws regarding business guidelines and tax policies, any ordinances regarding operations and security, any rules or tariffs public services provided by or on behalf of a public entity, and federal and state employment laws. The bill also proposes that miners be required to pay applicable taxes and government fees in acceptable forms of currency and to operate in a manner that does not cause any strain on the production capabilities or transmission network of the miners. an electric utility. The bill further allows individuals to operate bitcoin mining from home in accordance with applicable utility rules and tariffs.
The bill seeks to recognize that data centers create jobs, pay taxes, and provide general economic value to local communities and the state. It clarifies the guidelines needed to protect Bitcoin miners from discriminatory industry-specific regulations and taxes. The proposed bill defined several key terms such as “digital asset”, i.e. Bitcoin and cryptocurrency. It also defines “digital asset miner” as someone who mines digital assets and “digital asset mining” as the use of electricity to power a computer for the purpose of securing or validating a network. blockchain.
The proposed bill further clarifies that “digital asset mining activity” means a group of computers working at a single site that consumes more than one megawatt (1MW) on an average annual basis for the purpose of generate digital assets by securing a blockchain network. It also defines “node” as a computing device that contains a copy of blockchain-distributed ledger technology. The bill defines “residence” as a permanent dwelling place, unit or ancillary structure.
The bill proposed that the legislature appoint a county’s quorum court or city council, board of directors, board of commissioners or similar elected governing body of local government, and that a person may have a digital asset mining business in an area that is zoned for industrial use that has not been designated by the local government for other uses.