The state of Arkansas on Friday passed the “Right to Mine” Bitcoin bill, aimed at allowing miners to operate in the state as long as they meet the regulations constituted by the state government on mining. Having passed the state Senate, the bill is now headed to the governor’s office for approval.
According to the bill, the Arkansas Data Center Act of 2023, like Missouri, will create guidelines to regulate the operations of Bitcoin miners in the state so that they don’t violate standard business practices or engage in fraudulent activities. The guidelines would consist of laws concerned with business procedures and tax policies, operations and safety, utility usage, and federal employment regulations.
Arkansas joins a long list of states in the US that have adopted crypto mining with the new bill. Texas, Oklahoma, Nebraska, and Washington have all embraced crypto mining, and most house mega-mining factories in their states.
Bill Makes Bitcoin Mining Official
The bill would vindicate bitcoin miners from regulations and laws that discriminate against their operations in the American state. The bill also highlights the benefits the mining industry will bring to local communities, including job creation, revenue creation through taxes, and industrialization, which would come with the installation of data centers for Bitcoin mining.
Amidst the ban on crypto mining in China, the US took over as the world’s biggest hub for miners. The mining sector struggled last year due to a prolonged winter in the crypto market; however, miners have had a solid start to the year as Bitcoin’s hashrate is on the rise.
Arkansas Clarifies Key Mining Terms
The bill clarified what digital assets are and who miners are. According to the bill, digital assets are bitcoin and cryptocurrencies, while miners are individuals who mine digital assets. The bill also defined crypto mining as powering high-speed computers using electricity to mint a block in a network.
Recent research has shown that Bitcoin mining is environmentally friendly, debunking speculation that the sector is harmful to the ecosystem. The report shows that Bitcoin’s sustainable energy count has risen to 52.6%.
