The Arkansas Senate’s City, County, and Local Affairs Committee has rejected a proposed bill that sought to ban cryptocurrency mining facilities within 30 miles of any military base in the state. The committee voted 5 to 1 against the measure, which raised concerns about national security risks tied to mining operations near US military installations.
National Security and Environmental Concerns
The bill argued that digital asset mining could pose security threats to both Arkansas and the United States, especially when located near military bases, hospitals, and clinics. The proposal cited concerns over noise pollution, sustainability issues, and potential risks to national security as reasons for imposing zoning restrictions on crypto mining.
Efforts to regulate or restrict mining operations have been growing across the United States. In April 2022, 23 lawmakers sent a letter to the Environmental Protection Agency raising concerns that cryptocurrency mining facilities might violate the Clean Air Act and Clean Water Act. They also highlighted issues like excessive energy consumption and environmental pollution.
Crypto Mining Faces Political and Legal Challenges
The rejection of the Arkansas bill comes amid a broader national debate on cryptocurrency mining and its zoning, environmental, and security implications.
- In May 2024, President Joe Biden ordered the removal of a mining facility near Francis E. Warren Air Force Base in Cheyenne, Wyoming. The facility, owned by MineOne Cloud Computing Investment, was accused of having Chinese ownership and being a potential security risk, with the government warning that it could enable surveillance of sensitive US military installations.
- In October 2024, residents of Granbury, Texas, filed a lawsuit against MARA, alleging that a local mining facility caused significant noise pollution. The lawsuit claimed that residents experienced fatigue, headaches, nausea, hearing loss, memory issues, and psychological effects due to the noise generated by the facility.
Despite growing legal challenges, the Arkansas Senate’s decision signals that crypto mining operations in the state will continue without additional zoning restrictions for now.
