Arkansas legislators propose bill to prohibit crypto mining near military sites

Arkansas lawmakers have introduced Senate Bill 60 (SB 60), which takes a critical stance against crypto mining businesses near military facilities. Senator Ricky Hill and House Speaker Brian Evans proposed a bill on Jan. 15 to amend the Arkansas Data Centers Act of 2023 and to create a 30-mile buffer zone surrounding military sites such as bases, camps, hospitals, clinics, and arsenals. 

This legislation comes amid growing tensions about national security and the environmental impact of crypto mining, fueling arguments about how to balance technological innovation with public safety and community well-being.  

Reasons behind the SB 60 Bill 

The bill is inspired by recent events in Cabot, Arkansas, where Florida-based real estate investment firm Interstate Holdings began building a cryptocurrency mining plant near the Little Rock Air Force Base. The crypto mining plant is located less than five miles from the airbase, which has concerned local leaders and citizens. 

National security is a major concern, as Senator Hill asked: “Why did they pick this facility that’s less than five miles away from our air base?” Hill added, “This is a national security concern”.

Cabot Mayor Ken Kincade added to the argument by mentioning the negative impact of noise pollution and environmental degradation caused by cryptocurrency mining operations. “These centres cause loud noise disturbances and pollution that negatively affect our people, pets, wild animals, nature, and overall well-being”. 

The law proposes an exemption for existing cryptocurrency mining operations that were fully constructed and operational before Dec. 31, 2024. This ensures that existing firms are not forced to close their operations by regulations. 

The rise of crypto mining regulation in the US

Arkansas is hardly the only state fighting the repercussions of crypto mining. The Biden administration previously prohibited a Chinese-linked cryptocurrency mining company from utilizing territory near the Francis E. Warren Air Force Base in Cheyenne, Wyoming. 

Similarly, banking Senator Elizabeth Warren has expressed concerns about foreign-owned crypto mining operations, describing them as a threat to national security. “They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid,” Warren said in July of 2024.

Not everyone supports the bill. Dustin Curtis, Vice President of Interstate Holdings, has attacked the proposed legislation, claiming it unfairly targets cryptocurrency mining businesses. According to the local news outlet Arkansas Money and Politics: “This bill would make Arkansas the only state in America with anything like this. No one from the governor’s or attorney general’s office asked for this.”

Curtis further defended the company’s operations, claiming that the facility conforms with all state and federal noise, environmental impact, and security standards. He says the Cabot site has lower noise levels than the surrounding state highway. 

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