The state of Arkansas has passed legislation that aims to regulate Bitcoin (BTC) mining and protect miners from discriminatory regulations and taxes.
The Arkansas Data Centers Act of 2023 has been approved by both the House of Representatives and Senate and is currently awaiting Governor Sarah Huckabee Sanders’ final approval. The Act aims to establish guidelines for Bitcoin miners and ensure they have the same rights as data centers.
According to the legislation, “digital asset mining” is the process of utilizing electricity to run computers that protect or validate a blockchain network. Additionally, it defines a “digital asset miner” as an individual who carries out this activity. The bill also outlines other relevant digital asset-related terminologies such as “digital asset” and “blockchain network”. It mandates digital asset miners to comply with applicable state and federal laws, pay taxes and government fees, and operate in a manner that does not put pressure on the electric public utility’s ability to generate power or the transmission network.
The bill also covers the issue of digital asset mining at home, allowing individuals to utilize a node at their residence for this purpose, with applicable utility rules and rates in place. Additionally, the Act specifies that individuals are permitted to operate a digital asset mining business in an industrial zone that has not been designated by the local government for other purposes.
The passage of the Arkansas Data Centers Act of 2023 is a positive development for Bitcoin miners, providing them with regulatory clarity and protection from discriminatory regulations and taxes. The legislation is a step towards greater acceptance and recognition of cryptocurrencies in the US.