The Arkansas State House and Senate has passed a bill, which is now headed to the governor for approval, to regulate and protect the Bitcoin mining industry within the state. This bill, known as the Arkansas Data Centers Act of 2023, outlines a set of regulations and guidelines that businesses with Bitcoin mining operations have to follow in order to operate in the state. It also recognizes that Bitcoin mining is a source of job creation, tax contribution and economic benefits to the local community and the state.

The bill also puts forth definitions for several key terms, such as "digital asset", which means Bitcoin and cryptocurrency, and "digital asset miner", which refers to an individual who mines for digital assets. It defines "digital asset mining" as the usage of electricity to power a computer that is aimed at securing or validating a blockchain network. Additionally, businesses that use more than 1 megawatt (1MW) of electricity per year must be classified as a "digital asset mining business" and "node" is referred to a computational device that contains a copy of the blockchain-distributed ledger technology.

The bill not only sets clear guidelines for mining operations, but also protects miners from discriminatory industry-specific regulations and taxes. Moreover, it enables individuals to mine at home given they follow respective utility rules and rates, whereas businesses can operate in areas that are zoned for industrial use and not designated by the local government for other purposes.

In a nutshell, the Arkansas Data Centers Act of 2023 ensures the protection of the local Bitcoin mining operations so that businesses and individuals engaged in it can enjoy the economic benefits that come with it. This bill is currently awaiting approval from the governor and is likely to come into effect soon.



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