Arkansas lawmakers have introduced a bill to prohibit cryptocurrency mining operations within a 30-mile radius of military installations in the state. Senate Bill (SB 60), presented on January 15 by Senator Ricky Hill and House Speaker Brian Evans, seeks to amend the Arkansas Data Centers Act of 2023 to safeguard military facilities from potential risks associated with crypto mining.
Key Provisions of the Bill
The proposed legislation covers a range of military sites, including bases, camps, hospitals, clinics, and arsenals, aiming to restrict crypto mining activity in their proximity. However, the bill includes a grandfathering clause allowing facilities fully constructed and operational before December 31, 2023, to continue operations.
This initiative echoes an executive order issued by the Biden administration in May 2024, which barred a China-linked crypto mining firm from operating on land near a military base in Wyoming, citing national security concerns.
Controversy Surrounding the Cabot Facility
One prominent facility affected by the bill is a crypto mining center under construction near the Little Rock Air Force Base in Cabot, Arkansas. Owned by Florida-based real estate investment firm Interstate Holdings, the project has drawn criticism from local officials and residents.
Cabot Mayor Ken Kincade expressed concerns about noise pollution, citing complaints from residents. “These centers cause loud noise disturbances and pollution that negatively impact people, pets, wildlife, nature, and overall well-being,” Kincade said in December. Senator Hill emphasized national security risks, questioning the facility’s proximity to the air base. “Why did they pick this location that’s less than five miles from our air base? This is a national security concern,” Hill added.
Opposition from Interstate Holdings
Interstate Holdings Vice President Dustin Curtis criticized the bill, arguing it would make Arkansas the only state with such restrictive measures. “No one from the governor’s office or attorney general’s office asked for this,” Curtis said, according to Arkansas Money and Politics. He also noted that the Cabot facility’s noise levels would be lower than those of a nearby state highway and that it complies with all state and federal regulations concerning noise, environmental impact, and security.
Broader Context and Similar Incidents
Arkansas has previously grappled with noise pollution concerns tied to crypto mining. In October 2024, Bitcoin mining company NewRays claimed selective enforcement of noise regulations targeted its operations unfairly.
Nationally, scrutiny of crypto mining near sensitive facilities is growing. In addition to the Wyoming incident, Senator Elizabeth Warren has highlighted concerns about foreign-owned crypto mining operations on U.S. soil. “They’re loud, they’re hot, and they consume massive amounts of electricity, which can strain the power grid,” Warren stated in July 2024.
Moving Forward
The Arkansas bill reflects mounting concerns over the environmental, social, and security implications of cryptocurrency mining. As the debate continues, stakeholders will weigh the industry’s economic potential against its local and national impacts.