Arkansas Legislature Considers Banning Bitcoin Mining Near Military Bases
The state of Arkansas is on the brink of passing legislation that could reshape the landscape for Bitcoin and crypto mining operations, particularly those near military installations. Senate Bill 60, introduced by Senator Ricky Hill and House Speaker Brian Evans, seeks to amend the Arkansas Data Centers Act of 2023 by enforcing a 30-mile buffer zone around any military facility, including bases, camps, hospitals, clinics, and arsenals.
This proposed bill comes at a time when the intersection of national security and technological innovation is under scrutiny. The rationale behind this legislative move is twofold: addressing concerns related to noise pollution and safeguarding national security interests. Senator Hill has been vocal about the potential risks, pointing out the proximity of new Bitcoin mining facilities to critical military sites. "Why did they pick this facility that’s less than five miles away from our air base? This is a national security concern," he remarked, highlighting the strategic implications of such establishments.
The legislation directly impacts the ongoing construction of a mining facility in Lonoke County, near the Little Rock Air Force Base in Cabot. This project, spearheaded by Florida-based real estate investment firm Interstate Holdings, has already stirred local unrest due to noise pollution. Cabot Mayor Ken Kincade echoed the community's concerns, stating, "These centers cause loud noise disturbances and pollution that produce negative effects on our people, pets, wild animals, nature, and overall well-being."
However, the bill does not come without controversy. Dustin Curtis, Vice President of Interstate Holdings, argues that the legislation would make Arkansas an outlier among U.S. states, potentially stifling investment and innovation. "This bill would make Arkansas the only state in America with anything like this. No one from the governor’s office or attorney general’s office asked for this," he told Arkansas Money and Politics. Curtis further emphasized that the Cabot facility would adhere to noise levels lower than those of the adjacent state highway, complying with all relevant regulations concerning noise, environmental impact, and security.
The debate over this bill reflects broader national conversations about the environmental and security implications of Bitcoin and crypto mining. The issue isn't isolated to Arkansas; similar concerns have been raised elsewhere. For instance, in Wyoming, the Biden administration intervened to prevent a China-linked Bitcoin mining operation near the Francis E. Warren Air Force Base. This move was part of a broader discussion on the strategic implications of foreign investments in critical infrastructure.
Moreover, the noise pollution from these mining operations has been a recurring issue. In October, another Arkansas-based firm, NewRays, accused local officials of uneven enforcement of noise ordinances, suggesting a pattern of regulatory challenges faced by the Bitcoin mining industry in the state.
Senator Elizabeth Warren has also weighed in on the national debate, emphasizing the environmental impacts like high electricity consumption and potential power grid instability, alongside noise pollution, which could exacerbate community tensions and environmental degradation.
As Arkansas lawmakers deliberate on this bill, the balance between fostering technological advancement and protecting community and national interests remains a pivotal point of discussion. The outcome of this legislative effort could set a precedent for how other states might approach similar challenges in the rapidly evolving world of cryptocurrency and its infrastructure.