- Arkansas passes the Arkansas Data Centers Act of 2023, a bill regulating Bitcoin mining activity, providing guidelines and protections against discriminatory regulations and taxes.
- The bill follows similar legislation in Montana, while contrasting New York’s crypto-mining ban and President Biden’s proposed tax on electricity costs for miners.
Arkansas recently joined a growing list of U.S. states regulating Bitcoin mining by passing the Arkansas Data Centers Act of 2023. The bill, now awaiting the governor’s final approval, aims to establish guidelines for miners while safeguarding them from discriminatory regulations and taxes.
A Swift Legislative Move
Proposed by Senator Joshua Bryant on March 30, the bill quickly gained support from Arkansas’ state legislators. Recognizing the value of data centers in local communities, the legislation acknowledges their contributions to job creation and tax revenue, and seeks to regulate the state’s Bitcoin mining industry.
Key Provisions for Digital Asset Miners
The bill stipulates that digital asset miners must pay applicable taxes and government fees in acceptable currencies and operate without burdening an electric public utility’s generation capabilities or transmission network. Furthermore, the legislation grants crypto miners the same rights as data centers, ensuring no additional requirements are imposed on digital asset mining businesses compared to data centers.
Comparisons to Montana and Contrasts with New York
Arkansas’ move echoes a similar initiative in Montana, where the state Senate passed a bill to protect crypto miners operating within its borders. Montana’s legislation aims to shield miners from taxes on digital assets used for payments and eliminate energy rates discriminating against home crypto miners and digital asset businesses.
In contrast, New York Governor Kathy Hochul signed a two-year crypto-mining ban into law in November 2022. Additionally, President Joe Biden proposed a budget on March 9 that could impose a 30% tax on electricity costs for crypto miners in the United States, aiming to reduce mining activity.
Conclusion:
A Growing Trend in the United States
The regulation of Bitcoin mining in the United States is gaining traction as individual states propose legislation to govern the industry. The Arkansas Data Centers Act of 2023 is the latest in a series of bills aimed at creating guidelines for miners and protecting them from unfair treatment.
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