Key Takeaways:
- Arkansas Counties Pass Crypto Miner Noise Regulations in Advance of State Law Implementation on August 1.
- The proposed state law will subject crypto mining facilities to the same restrictions that apply to data centres.
In response to the surging popularity of cryptocurrency mining operations within their borders, counties across Arkansas have taken swift action by implementing noise regulations aimed at curbing the disruptive effects of mining activities.Â
Multiple Arkansas counties are expediting the adoption of emergency ordinances to grant them the authority to regulate noise and other matters ahead of a forthcoming state law, set to be effective from August 1.Â
The new state law will restrict the types of regulations that local governments can impose on cryptocurrency mining facilities.
These mining facilities, known for seeking out remote locations to establish their server farms for cryptocurrency generation, have raised concerns due to the noise generated by cooling fans, significant electricity consumption, and other associated issues.
As the demand for cryptocurrencies continues to grow, so does the mining infrastructure, leading to concerns from local communities about the noise generated by these energy-intensive operations.
Some mining operators argue that the stringent noise restrictions may hamper their operations or force them to relocate to more mining-friendly jurisdictions. As crypto mining can be highly competitive, any disruptions to operations could impact the profitability of mining ventures in the region.
On the other hand, proponents of the noise regulations contend that they are necessary to foster harmonious coexistence between miners and local communities. By addressing noise concerns promptly, authorities aim to demonstrate their commitment to being proactive in balancing the interests of all stakeholders involved.
The new state law subjects cryptocurrency mining facilities to the same rules that apply to data centres, establishing guidelines for miners and safeguarding them from unfair regulations and fees.
Arkansas residents, on the other hand, barely had time to consider the new legislation, which was proposed, debated in committees, and passed by legislators in less than a week, from March 30 to April 7.
The measure’s author, state Rep. Rick McClure, reportedly stated that “no one spoke against this bill in committees or on the legislative floors.” Green Digital, GMI Computing, United BitEngine, and Cryptic Farms are among the Arkansas cryptocurrency mining companies.
Although the act does not explicitly prohibit local regulations concerning “digital asset mining” facilities, it does impose certain restrictions on the actions that localities can undertake.
Notably, the bill prohibits local governments from engaging in discriminatory practices against digital asset mining facilities or imposing specific decibel level limitations solely for “home digital asset mining” beyond the standard sound pollution limits.
Furthermore, the act disallows local governments from implementing distinct requirements for digital asset mining businesses compared to those applied to data centers in general. Additionally, it prevents the rezoning of areas with the intention or consequence of discriminating against digital mining operations.
