Arkansas Lawmakers Propose Ban on Crypto Mining Near Military Bases
- Arkansas proposes a bill banning crypto mining within 30 miles of military bases.
- Cabot crypto mine meets state rules but faces pushback over military base proximity.
- Arkansas lawmakers aim to restrict crypto mining near sensitive military locations.
Arkansas legislators have presented Senate Bill 60 (SB 60), which seeks to restrict cryptocurrency mining operations within a 30-mile radius of any military establishment in the United States. The bill is intended to regulate national security and environmental concerns and is an amendment to the Arkansas Data Centers Act of 2023.
National Security and Noise Concerns
The proposed legislation originates from the perceived threats to national security and community disturbance. Senator Ricky Hill focused on the fact that crypto mining facilities are located close to military objects, including the Little Rock Air Force Base in Cabot, Arkansas. This bill would cover different types of military properties such as bases, hospitals, and arsenals while exempting fully constructed and operating operations on or before December 31, 2023.
Cabot Mayor Ken Kincade expressed concerns about noise issues, as complaints were coming from the people living in the area. He said the operations negatively affected the community’s well-being, affecting people, pets, and wildlife. However, Kincade and other local officials have come out in the open opposing a crypto mining facility near the Little Rock Air Force Base belonging to Interstate Holdings.
Senator Hill raised concerns about national security and asked why the facility was sited within five miles of the airbase. The concerns match similar federal moves, including the Biden administration’s order in May 2024 to close down a Chinese-linked cryptocurrency mining farm near a Wyoming Air Force base.
Industry Pushback Against Restrictions
Interstate Holdings Vice President Dustin Curtis opposed the bill, saying that the proposed restrictions would make Arkansas the only state with such a measure. According to Curtis, the Cabot facility complies with all federal and state regulations, including noise and environmental standards. He pointed out that the plant generates less noise than highways and operates with excess power without straining the power lines.
The company also clarified that its operations are not connected to China and that there is no security issue. Curtis claimed that mining computers are dedicated to blockchain and are more secure than general computers because they don’t hold other applications.
Interstate Holdings has stated that it has taken proper steps to comply with the country’s laws, and the Cabot project met all FEMA guidelines. Nevertheless, there were brief interruptions in the facility’s operations because of a cessation order received in December 2023.
Related: https://cryptotale.org/prominent-portuguese-bank-big-blocks-crypto-transfers/
Proposed Legislation Implications
The new bill follows increasing concern over cryptocurrency mining activities near sensitive infrastructure and installations. The Biden administration has also taken similar actions, citing national security concerns as the reason for limiting foreign ownership. Furthermore, U.S. Senator Elizabeth Warren also expressed her concern about the crypto mining process, which could be too energy-consuming and affect the grid.
