Arkansas State Capitol passes resolutions on cryptocurrencies

Little Rock, Arkansas – Two proposals that could limit cryptocurrency mining were passed by the House on Wednesday when they were in the Arkansas State Capitol. Although they are not currently laws, they open the door for further debate and eventual adoption.

Act 851, a policy that safeguards cryptocurrency mining, was supported by more than 90% of state lawmakers last year. However, during the 2024 legislative session, lawmakers are reversing this decision by voting in favor of eight different related legislation in the House.

Legislators are generally concerned about reducing noise, foreign ownership, and the proximity of cryptocurrency mining to residential areas. Currently, a few legislators who had previously backed these safeguards are seeking to limit them.

“I voted for at 851. And I think we’ve seen a lot of problems arise in the last almost a year. So I voted to hear all the resolutions and committee,” said Senator Breanne Davis after a bill came through the Senate this week.

The main point of contention in the issue is not whether Act 851 should be changed, but rather what precise modifications should be made.

“I want it to be specific and narrow. I want us to handle the two biggest concerns, which are noise and foreign ownership,” Davis described.

Others, however, advocated for comprehensive legislation to be discussed further, including the level of regulation of the sector.

“This is just to make sure that we have all the flexibility that we need to get something done,” said House representative Stephen Meeks. “We got to do something to give those folks some relief.”

Two of the eight legislation that were presented to the House on Wednesday passed, even though the Senate only approved one bill last week that addressed cryptocurrencies.

Before a potential law is passed during this fiscal session or the next, the committees will need to continue their discussion.

Additionally, the House advanced a bill on Wednesday to restructure the compensation of state personnel. The plan would establish a bonus system and give some employees raises.

The decision on Wednesday permits the House to consider a non-budget item during the fiscal session, just like it did for the laws about cryptocurrency mining. The real bill still has to be expanded upon, though.