Bitcoin Mining in Arkansas

Arkansas Moves to Legitimize Bitcoin Mining

A new bill states that discrimination against crypto mining businesses would be prohibited in Arkansas

Lumerin Protocol
3 min readApr 13, 2023

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The Bitcoin mining landscape seems to be reorganizing yet again.

Last week, Texas, one of — if not the — greatest mining hubs in the world, passed a bill restricting and pulling incentives for miners in an unexpected turn of the State’s stance towards Bitcoin mining.

Almost as if it were a response to that event, the State of Arkansas approved another bill that legitimizes Bitcoin mining as a business activity, not granting them any particular benefits but strictly prohibiting discriminatory regulations towards them.

The bill passed by both the House of Representatives and Senate and awaits Governor Sarah Huckabee Sanders’ signature.

Let’s dive into the matter in detail.

The Arkansas Data Centers Act of 2023

According to Decrypt, the bill proposes classifying bitcoin miners within the same category as data centers in Arkansas.

While the bill doesn’t grant any tax benefits or incentives to attract miners to the State, it does provide protection to miners and guarantees that the Arkansas government won’t impose any additional requirements or restrictions different from those imposed on data centers.

Legislators from Arkansas supported the bill immediately, highlighting Bitcoin mining operations and data centers for their contribution to the local economy through the creation of jobs, tax payments, and providing economic value in general.

Consequences of Arkansas’ New Bill

For the Bitcoin mining community, Arkansas’ initiative comes as exciting news as it breaks the trend started by the states of New York and Texas, who have recently taken a hostile turn towards the industry.

This bill, on the contrary, takes a step towards recognizing the importance of Bitcoin mining and supporting its growth, highlighting the positive effects it can have on local communities and economies.

Not only it reassures miners that their operations are welcome within the State’s territory, it also provides clarity on multiple concepts associated with the cryptocurrency industry that have some degree of ambiguity, which often causes confusion among regulators.

Among these concepts, there is “digital asset mining business,” which is defined as a collection of computers located at a single site that consumes over one megawatt (1MW) of power on average per year to generate digital assets through blockchain network security. “Node” on the other hand, is described as a computational device that houses a copy of the blockchain-distributed ledger technology.

The bill includes these clarifications as it also covers the case of individuals mining on their own, as it mentions that “an individual may utilize a node in this state for the purpose of operating home digital asset mining at the individual’s residence according to applicable utility rules and rates.”

Whether this new legislation brings more miners to Arkansas or not, it’s definitely worth keeping an eye on how it progresses and its potential impact on the Bitcoin mining landscape in the United States.

Provided it’s finally signed by the Governor, it could set a precedent for other states to follow suit and provide more favorable conditions for Bitcoin miners.

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Lumerin Protocol

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