Key Takeaways
- The bill sought to address concerns about national and state security by restricting mining activities near military installations
- The proposed legislation, Senate Bill 60, was voted down in a 6-1 decision
The Arkansas Senate’s City, County and Local Affairs Committee recently rejected a bill that aimed to prohibit crypto mining operations within a 30-mile radius of military facilities in the state. The proposed legislation, Senate Bill 60, was voted down in a 6-1 decision.
The bill, introduced by Senator Ricky Hill and Representative Brian S. Evans, sought to address concerns about national and state security by restricting mining activities near military installations, including hospitals and clinics. It also included provisions to revoke existing permits for mining facilities operating within the designated radius and granted the Attorney General authority to investigate potential violations.
The bill’s sponsors argued that crypto mining poses risks to national security, particularly when operations are conducted near sensitive military sites. “Risks posed by digital asset mining include, without limitation, threats to national security and the security of the State of Arkansas,” the bill stated.
It emphasized the urgency of the matter, asserting, “This act is immediately necessary in order to ensure the health and safety of the State of Arkansas and its citizens.” Had the bill passed, it would have required mining facilities within the 30-mile radius to cease operations unless they had obtained permits from the Oil and Gas Commission before December 31, 2024. Ongoing construction of such facilities would also have been halted.
The bill’s rejection comes amid a broader national conversation about the role of crypto mining in the U.S. economy and its potential risks. Earlier this year, former President Joe Biden ordered the removal of a crypto mining facility near the Francis E. Warren Air Force Base in Wyoming, citing national security concerns.
The facility, owned by MineOne Partners Limited, a company with majority Chinese ownership, was accused of potentially enabling surveillance of the nearby military installation. This decision highlighted the federal government’s growing scrutiny of crypto mining operations near sensitive sites.
Despite the concerns raised by some lawmakers, the crypto-mining industry continues to enjoy support from other political figures. Former President Donald Trump, who is currently serving his second term, has been a vocal advocate for domestic Bitcoin mining. He has pledged to ensure that all future Bitcoin mining takes place within the U.S., reinforcing his administration’s pro-crypto stance. The U.S. currently accounts for over 40% of global crypto mining activity.
The debate over crypto mining is not limited to national security concerns. Environmentalists have also criticized the industry for its high energy consumption and environmental impact. In April 2022, 23 U.S. lawmakers sent a letter to the Environmental Protection Agency, raising concerns about whether mining operations comply with the Clean Air Act and the Clean Water Act.
The letter also highlighted issues such as noise pollution and sustainable energy use, citing complaints from communities near mining facilities in states like New York, Tennessee, and Georgia. More recently, residents in Granbury, Texas, filed a lawsuit against Marathon Digital, alleging that a local mining facility generated excessive noise, causing physical and psychological symptoms among residents.
In response to these criticisms, some mining companies are exploring more sustainable practices. For instance, at CES 2025, Canaan, a leading mining hardware manufacturer, unveiled a new Bitcoin miner designed to double as a home heater, showcasing efforts to address environmental concerns.
