Bitcoin miners protected by new legislation in Arkansas
The state of Arkansas has recently joined the ranks of other US states to pass a bill that seeks to regulate Bitcoin (BTC) mining. The Arkansas Data Centers Act of 2023 has passed both the House of Representatives and the Senate and is currently awaiting final approval by Governor Sarah Huckabee Sanders.
The law seeks to establish guidelines for Bitcoin miners and protect them from “discriminatory regulations” and taxes, ensuring they have the same rights as data centers.
What are the main guidelines of the Bitcoin Mining Bill?
Subchapter 5 of the adopted bill outlines several definitions that are important for understanding the legislation. This subchapter defines “digital asset mining” as the use of electricity to power computers to secure or validate a blockchain network, and “digital asset miner” as a person who engages in this activity.
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The bill also contains definitions for other terms related to digital assets, such as a “digital asset” and “blockchain network.” Furthermore, it defines “digital asset mining business” as a group of computers working in a single location that use more than one megawatt (1 MW) annually to generate digital assets by securing a blockchain network.
In addition, the act outlines the requirements that miners must meet to operate in the state, including compliance with state and federal laws, payment of applicable taxes and government fees, and operating in a manner that does not cause “stress” on the electric utility’s generation capacity or transmission grid .
It also addresses digital asset mining in the home, allowing individuals to use a node in their home for this purpose, subject to applicable usage rules and pricing. In addition, the law clarifies that a person can have a digital asset mining operation in an area regulated for industrial use that has not been designated by local authorities for other uses.
To Protect Bitcoin Mining From ‘Discriminatory Regulations’
To protect Bitcoin mining operations from “discriminatory regulations” and taxes, the law includes provisions that prohibit discrimination against mining operations for digital assets. Specifically, it states that a digital asset mining business can operate in the state if it complies with state laws regarding business guidelines and tax policies, any operating and safety ordinances, and state and federal labor laws.
This will help ensure that Bitcoin mining businesses are not subject to regulations or taxes that could hinder the growth or development of this important sector of the emerging crypto industry, at least in the state of Arkansas.
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Overall, the digital asset mining guidelines outlined in the Arkansas Data Centers Act of 2023 are designed to provide clarity and protection for the industry while ensuring that digital asset miners operate in a responsible and sustainable manner.
As of this writing, the Bitcoin trading range remains stable at $28,200, experiencing a minor increase of 1% over the past 24 hours.
BTC is trading sideways on the 1-day chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash, chart from TradingView.com
