Arkansas lawmakers float bill to ban crypto mining near military facilities

Arkansas lawmakers have introduced a new bill that would ban crypto mining operations within 30 miles of any US military facility in the state.

Senate Bill (SB 60) was introduced by Senator Ricky Hill and House Speaker Brian Evans on Jan. 15, aiming to amend the Arkansas Data Centers Act of 2023 to keep crypto mining facilities away from military installations. 

The bill includes military bases, camps, hospitals, clinics, and arsenals and restricts crypto mining within a 30-mile radius. However, it includes a grandfathering clause for facilities fully constructed and operational before Dec. 31, 2024, which will be allowed to continue. 

The move bears some similarities to an order from the Biden administration in May 2024 that prevented a China-linked crypto mining firm from using land near a military base in Wyoming. 

The legislation specifically affects the Lonoke County crypto mining facility being built near Little Rock Air Force Base in Cabot, Arkansas, owned by Florida-headquartered real estate investment firm Interstate Holdings. 

Cabot Mayor Ken Kincade cited noise pollution concerns following complaints by residents in December, while Senator Hill cited national security concerns. 

“Why did they pick this facility that’s less than five miles away from our air base? This is a national security concern,” Hill said in December.

“These centers cause loud noise disturbances and pollution that produce negative effects on our people, pets, wild animals, nature, and overall well-being,” Kincade added at the time. 

Interstate Vice President Dustin Curtis voiced his opposition to the bill, stating, “This bill would make Arkansas the only state in America with anything like this. No one from the governor’s office or attorney general’s office asked for this,” according to local news outlet Arkansas Money and Politics.  

Curtis added that the proposed Cabot facility will have a lower decibel volume than the state highway that runs next to it. “Interstate’s Cabot mine has met all state and federal regulations related to noise, environmental impact, and security,” he added.

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It is not the first time noise pollution concerns have been raised in the state. In October, Bitcoin mining firm NewRays alleged that an Arkansas judge selectively enforced noise legislation to target its business. 

In May 2024, the Biden administration signed an order preventing a China-linked crypto mining firm from continuing to use land near the Francis E. Warren Air Force Base in Cheyenne, Wyoming.

In July banking Senator Elizabeth Warren voiced her opinion about the potential dangers posed by foreign-owned crypto mining operations on American soil. “They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid,” she said at the time. 

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