Several counties in Arkansas are racing against the clock to pass emergency legislation regarding noise and other activities associated with cryptocurrency mining before a new state law takes effect on August 1, according to local media reports. The impending state law has brought crypto mining facilities under the same regulations as data centers, providing guidelines for miners and safeguarding them against discriminatory regulations and taxes. However, residents of Arkansas have had little time to discuss the legislation, as it was proposed, debated in committees, and passed by legislators within a span of just one week, from March 30 to April 7.
State Representative Rick McClure, the author of the bill, states that nobody opposed the bill during the committee meetings or legislative sessions. Green Digital, GMI Computing, United BitEngine, and Cryptic Farms are some of the prominent crypto mining companies operating in Arkansas.
To address complaints of excessive noise round the clock, local authorities have begun enacting more rules. During a July meeting, Kris Kendrick, a justice of the peace for Faulkner County’s Quorum Court, expressed concern over the noise level and lack of consideration for neighbors in the crypto mining operations. After the bill was passed, the Association of Arkansas Counties developed a model ordinance that counties can adopt before the law takes effect. As a result, over a dozen counties have reportedly passed noise ordinances specifically targeting data centers.
Maree Coats, another justice of the peace, emphasized that the issue is not just about people being unable to enjoy their porches due to the noise. She mentioned that individuals can hear the constant noise from their bedrooms, disrupting their day-to-day lives. While the new legislation does not fully prohibit county regulations, it does prevent local governments from discriminating against crypto mining facilities and imposing limits on decibel levels beyond those set for general sound pollution. Counties are also prohibited from rezoning areas with the intention or effect of discriminating against digital mining operations.
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It is worth noting that this rush to pass emergency legislation is indicative of the growing tensions and conflicts surrounding crypto mining activities. The burgeoning industry has expanded rapidly in recent years, raising concerns about noise pollution and other potential disturbances, particularly in residential areas. As such, state and local governments are scrambling to establish appropriate regulations to strike a balance between supporting the economic opportunities presented by crypto mining and addressing the concerns of affected communities.
In Arkansas, the crypto mining industry has reached a point where it necessitates greater regulatory oversight, mirroring trends seen in other parts of the world. The state law enacted in response to this growing industry aims to provide clarity and structure for miners while protecting them from undue regulations. However, the haste with which the law was passed has created challenges for communities as they attempt to address the immediate concerns related to noise and other disturbances associated with crypto mining.
Moving forward, it is crucial for state and local governments to engage in thoughtful and inclusive discussions with all stakeholders, including crypto mining companies and affected residents, to find sustainable solutions that allow for the responsible operation of these facilities without unduly impacting local communities. Balancing economic growth with environmental and social concerns is a complex task, but one that must be undertaken to ensure the long-term success and harmony of the crypto mining industry in Arkansas and beyond.
