Arkansas Moves to Ban Crypto Mining Near Military Bases

Last Updated on January 16, 2025

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Key Takeaways:

  • Proposed Crypto Mining Ban: Arkansas lawmakers introduced Senate Bill 60 to prohibit cryptocurrency mining within 30 miles of U.S. military facilities, citing national security and environmental concerns.
  • Grandfather Clause and Opposition: Facilities operational before December 31, 2023, are exempt. Industry leaders oppose the bill, claiming it singles out Arkansas with unique restrictions.
  • Local and National Context: Noise and security issues are central to the debate, mirroring previous federal and state-level actions targeting crypto mining near sensitive sites.

Arkansas lawmakers have introduced Senate Bill (SB 60), seeking to ban cryptocurrency mining within 30 miles of U.S. military facilities in the state.

Sponsored by Senator Ricky Hill and House Speaker Brian Evans, the bill aims to amend the Arkansas Data Centers Act of 2023.

Facilities built and operational before December 31, 2023, are exempt under a grandfathering clause.

The move mirrors a 2023 Biden administration decision to block a crypto mining project near a Wyoming military base.

The legislation targets a crypto mining facility in Lonoke County, located near the Little Rock Air Force Base.

Local leaders, including Cabot Mayor Ken Kincade, have raised concerns about noise pollution and environmental issues, while Senator Hill emphasized potential national security risks.

Hill questioned, “Why did they pick this facility that’s less than five miles away from our air base?”

Interstate Holdings, the company behind the Cabot facility, opposes the bill, arguing it would make Arkansas the only state to enforce such restrictions.

Vice President Dustin Curtis stated the facility complies with all state and federal regulations and claimed its noise levels would be lower than nearby highways.

This proposal reflects a growing trend to regulate crypto mining due to concerns about noise, environmental impact, and security, especially near sensitive locations.

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