Lawmakers in Arkansas have proposed legislation that would prohibit cryptocurrency mining operations within a 30-mile radius of any U.S. military base in the state. The new bill, identified as Senate Bill 60, was introduced on January 15 by Senator Ricky Hill and House Speaker Brian Evans. This legislation aims to amend the Arkansas Data Centers Act of 2023 to ensure that crypto mining facilities remain clear of military installations.
The bill encompasses various military facilities, including bases, hospitals, clinics, and arsenals. However, a grandfathering provision is included, allowing facilities that are fully constructed and operational before December 31, 2024, to continue their operations unimpeded. This targeted approach to restricting crypto mining has drawn comparisons to a May 2024 directive from the Biden administration that barred a China-linked mining operation from land adjacent to a military base in Wyoming.
Central to the discussion is the Lonoke County cryptocurrency mining facility currently being developed near Little Rock Air Force Base in Cabot, Arkansas. This facility, owned by Interstate Holdings — a Florida-based real estate investment firm — has sparked concerns among local officials. The mayor of Cabot, Ken Kincade, has raised issues regarding noise pollution following community complaints. Senator Hill has echoed these sentiments, emphasizing the national security implications of having such operations so close to military installations.
In contrast, an executive at Interstate Holdings has criticized the bill, arguing that it would position Arkansas as the only state with such a restrictive regulation. He expressed confidence that the Cabot facility complies with all relevant state and federal standards concerning noise, environmental impact, and security. The concern about noise pollution is not new, as it has previously been raised regarding other cryptocurrency operations in the state. The implications of these legislative moves reflect ongoing tensions between emerging technology and established regulatory frameworks.
