Bitcoin Miners Protected By New Legislation In Arkansas
The state of Arkansas recently joined the ranks of other US states in passing a bill that aims to regulate Bitcoin (BTC) mining. The Arkansas Data Centers Act of 2023 has successfully passed the House of Representatives and Senate and is currently awaiting final approval by Governor Sarah Huckabee Sanders.
The Act seeks to establish guidelines for Bitcoin miners and protect them from “discriminatory regulations” and taxes, ensuring they have the same rights as data centers.
What are the main guidelines for the Bitcoin mining bill?
Subchapter 5 of the approved bill brings several important definitions for understanding the legislation. This subchapter defines “digital asset mining” as using electricity to power computers to secure or validate a blockchain network and “digital asset miner” as an individual who engages in this activity.
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The bill also includes definitions for other terms related to digital assets, such as “digital asset” and “blockchain network”. Furthermore, it defines “digital asset mining business” as a group of computers working in a single location that consumes more than one megawatt (1 MW) annually to generate digital assets securing a blockchain network.
Additionally, the Act outlines the requirements digital asset miners must meet to operate in the state, including compliance with state and federal laws, paying applicable government taxes and fees, and operating in a manner that does not cause “stress” on the state. electrical system generation capabilities or transmission network of the concessionaire.
It also addresses home mining of digital assets, allowing individuals to use a node in their home for this purpose, subject to applicable utility rules and fees. Furthermore, the Act clarifies that a person can have a digital asset mining business in an area zoned for industrial use that has not been designated by the local government for other uses.
To protect Bitcoin mining from “discriminatory regulations”
To protect Bitcoin mining companies from “discriminatory regulations” and taxes, the Act includes provisions that prohibit discrimination against digital asset mining companies. Specifically, it states that a digital asset mining company may operate in the state if it complies with state law relating to business guidelines and tax policy, any ordinance relating to operations and safety, and state and federal labor laws.
This will help ensure that Bitcoin mining companies are not subject to regulations or taxes that could impede the growth or development of this important sector of the nascent cryptocurrency industry, at least in the state of Arkansas.
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Overall, the guidelines for digital asset mining companies outlined in the Arkansas Data Centers Act of 2023 are designed to provide clarity and protection to the industry, ensuring that digital asset miners operate in a responsible and sustainable manner.
At press time, Bitcoin’s trading range remains steady at $28,200, experiencing a small 1% increase over the past 24 hours.
BTC is trading sideways on the 1-day chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash, chart from TradingView.com