Key takeaways:
- A new Arkansas bill that attempts to prevent “discrimination” against mining for digital assets would classify miners as data centers.
- The measure specifies that in order to operate in the state, bitcoin mining operations must abide by state tax and commercial regulations.
While other states are moving against mining, the state and House of Arkansas passed a bill designed to safeguard miners from discrimination. The measure, which grants equal rights to data centres and miners alike, is now anticipated to be sent to the governor’s office for additional approvals.
Under the Arkansas Data Centers Act of 2023, the Bitcoin mining protection bill seeks to ensure efficient oversight of the Bitcoin mining industry nationwide in America.
This innovative law aims to give Bitcoin miners a strong framework, protecting them from unfair taxes and restrictions while ensuring parity with data centres.
The bill, supported by Arkansas Senator Joshua Bryant (R) and championed by Rep. Rick McClure, gained support from state lawmakers quite quickly.
The bill acknowledges that data centres offer substantial economic benefit to local communities, create jobs, and pay taxes. “A digital asset miner has to pay any relevant taxes and fees to the government in appropriate kinds of currency and operate in a manner that does not place a burden on the generation or transmission network of an electric public utility,” according to the approved bill.
This means that local governments cannot enact laws that specifically target the crypto-mining sector, and companies involved in the mining of digital assets will be entitled to challenge planning amendments.
The provider of public utilities in Arkansas is also prohibited from charging miners “unreasonably discriminatory rates. The bill also defines a number of words, including digital assets, node, digital asset mining firm, and digital asset mining.
The sentiment towards bitcoin mining does not seem one-sided and stable as of yet. While Arkansas appears to be advancing quickly, the US budget suggests a 30% excise tax on the electricity used by cryptocurrency miners.
The innovative action by Arkansas contrasts with those of other states, including Texas, where lawmakers are attempting to do away with incentives for Bitcoin miners through Bill 1751.
