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DailyBubble News

Arkansas State House passes bills to limit cryptocurrency mining

The Arkansas State House has approved two bills that could lead to a ban on crypto mining activities within the state. These bills are still under consideration and have yet to become full-fledged legislation, but they set the stage for further discussions that could eventually result in new laws.

Senators recently held a Senate hearing to address concerns such as noise reduction, foreign ownership, and the proximity of cryptocurrency mining to residential areas. Of the eight bills introduced to the House on April 17, two have been enacted, while the Senate approved one bill related to cryptocurrencies last week.

One of the bills, Act 851, aims to regulate Bitcoin mining in Arkansas by establishing rules for miners and protecting them from discriminatory restrictions and taxes. The energy-intensive nature of bitcoin mining has raised concerns about the waste it generates, with more than 77 kilotons of electrical waste produced annually, according to Investopedia.

Beyond the U.S., Paraguay is also grappling with legal issues related to crypto mining. Senators in Paraguay have proposed legislation to temporarily ban crypto mining activities due to concerns about illegal mining operations stealing power and disrupting the electrical supply. However, officials in Paraguay are considering selling excess energy from the Itaipu hydroelectric project to miners as an alternative.

Despite challenges like the upcoming Bitcoin halving, leading crypto mining companies like Marathon Digital Holdings, Riot Platforms, and CleanSpark remain optimistic. These companies are leveraging cost-efficient operations, advanced mining technology, and growing demand for cryptocurrencies to potentially offset an anticipated $10 billion annual revenue loss from the halving.

The CEOs of these mining firms are hopeful that the surge in demand driven by new spot ETFs will help boost Bitcoin’s price enough to counteract the effects of the halving. Since traditional asset management firms introduced these ETFs in January, they have attracted a total net inflow of $12.27 billion, according to data from the crypto finance research platform SoSo Value.

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