Proposed crypto mining regulations will be considered by Arkansas House • Arkansas Advocate

Rep. Andrew Collins, D-Little Rock, was the only committee member to vote against the bills. He said he saw some positive aspects of the legislation but felt that the foreign ownership language was “casting a net that is both too wide and too narrow” that infringed on the freedom to do business.

The bills would prohibit ownership of crypto mines by the list of foreign countries from which the federal International Traffic in Arms Regulations bans imports, exports, sales or a combination of the three. Collins argued that the bills would place unfair and possibly unconstitutional restrictions on citizens of those countries who live in the United States or Americans who live in those countries.

“We’re chilling foreign investment [and] probably chilling immigration because who knows who we’re going to go at next, based on what national origin?” Collins said.

Questions and concerns

The bills’ sponsors, all Republicans — Bryant, Sen. Missy Irvin of Mountain View, Rep. Rick McClure of Malvern and Rep. Jeremiah Moore of Clarendon — fielded several of the same questions lawmakers have been raising in the three weeks since the fiscal session began.

John Bethel, director of public affairs at Entergy, repeated his statement from earlier this month to the equivalent Senate committee that the utility can handle crypto miners’ usage of large amounts of electricity.

Six of eight crypto mining resolutions fall short in Arkansas House

Bethel said Entergy has taken a neutral stance on the bills because the state Public Service Commission has regulatory authority if crypto operations strain local electric grids.

Public Service Commission Chief of Staff Danni Hoefer said utility companies have the primary responsibility of monitoring the stability of the electric grid.

Rep. Johnny Rye, R-Trumann, said he had concerns about crypto mines’ impact on both electrical grids and groundwater availability.

Bryant said SB 79’s oversight framework should “make sure that we are not depleting those natural resources,” especially by ensuring that several crypto mines are not reliant on the same sources of water and electricity.

“A goal of the complementary pieces of these two bills is… ideally that we’re managing that early in this endeavor in our state and not coming back in five years when we think it’s going to be a problem,” Bryant said.

There are crypto mines near DeWitt, in Moore’s district, and in the Bono community near Greenbrier, in Irvin’s district. An out-of-state entity has attempted to start a crypto mine near Harrison, which is represented by Sen. Bryan King, R-Green Forest.