The Arkansas State Senate recently passed two bills aimed at prohibiting cryptocurrency mining. While these bills have not yet become official legal policies, they serve as a basis for future discussions and potential legislation.
During a Senate session on April 17, senators raised various concerns regarding cryptocurrency mining. These concerns included strategies for reducing noise, protecting the interests of residents, and determining suitable locations for these mining operations.
Out of the eight bills presented, two were successfully passed by the House. This is a significant development considering that only one bill focused on cryptocurrencies was approved last week. The ongoing debate revolves around refining Act 851 and determining the specific details that need to be addressed. Committees will review the proposed legislation before it is passed during the current or upcoming fiscal session.
The implications of these bills extend to the upcoming Bitcoin halving event. The Arkansas Data Centers Act of 2023, responsible for regulating Bitcoin mining activities in the state, aims to prevent any discriminatory practices against miners at both the state and federal levels. However, this process has faced criticism for its carbon-intensive nature and the significant electronic waste it generates. According to Investopedia, Bitcoin mining consumes a substantial amount of energy, resulting in over 77 kilotons of electronic waste annually.
Cryptocurrency mining poses challenges not only in Arkansas but also in other countries. Lawmakers in Paraguay are considering temporarily suspending crypto mining activities due to unauthorized mining operations draining the country’s electricity resources. Proposed legislation in Paraguay targets the construction and operation of facilities involved in creating, storing, and exchanging cryptocurrencies. However, some senators in Paraguay are suggesting that excess energy generated by the country’s efficient hydropower plant be supplied to mining firms.
Some miners are currently preparing for the upcoming Bitcoin halving, which adds pressure to their operations. Markus Thielen, the head of 10X Research, has indicated that his institution is willing to sell up to $5 billion worth of mined Bitcoins within a month after the halving event.
As a result, Cantillon, a prominent figure in the cryptocurrency industry, believes that the price of Bitcoin may experience a period of selling pressure lasting four to six months following the halving. This could lead to a sideways movement in the price of Bitcoin, similar to what has been observed in the past.