Cryptocurrency mining has emerged as a rapidly growing industry across the United States, and Arkansas is no exception. With its favorable energy rates, rural land availability, and evolving legislative framework, the state is becoming an attractive destination for digital asset mining operations. However, as this technology expands, so do concerns from local communities, utility providers, and policymakers.
At the heart of Arkansas’s approach to regulating crypto mining is House Bill 1799, which became Act 851 during the 2023 legislative session. Spearheaded by Senator Joshua Bryant of Rogers, the bill aims to create a balanced environment where innovation can thrive while protecting residents’ rights and infrastructure.
The Legislative Landscape: Act 851 and Property Rights
Senator Bryant, a veteran and advocate for individual property rights, emphasized that his motivation behind supporting Act 851 was not corporate lobbying but grassroots interest from Arkansans—many of them veterans—looking to invest millions into the state’s economy.
“I wasn’t approached by anybody other than local citizens... saying ‘Hey, I want to invest. I want to bring millions of dollars into our state of Arkansas. But I want some protections that, as long as I follow and play by the rules, you won’t just arbitrarily kick me out of the state.’”
This sentiment underscores a key principle embedded in the legislation: fairness and predictability for investors who operate within legal boundaries. Despite passing with overwhelming bipartisan support—unanimously in most chambers—the law has sparked unexpected debate, particularly around issues of utilities, noise pollution, and foreign ownership.
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Addressing Utility Strain: Water and Electricity Use
One of the most pressing concerns surrounding cryptocurrency mining facilities is their impact on public utilities.
Water Consumption Challenges
In Wooster, Arkansas, Mayor Terry Don Robinson highlighted ongoing water usage issues linked to a nearby crypto mine in Greenbrier. While the facility uses a closed-loop cooling system designed to recirculate water for up to 60 days before replacement, a significant leak led to excessive consumption—peaking at 601,000 gallons in one month.
Robinson clarified that these figures were anomalies caused by faulty installation rather than standard operation. Once repaired, regular usage should remain minimal and non-contaminating. Still, the incident raises questions about oversight and maintenance standards for such industrial-scale operations.
Electricity Demand and Grid Stability
Energy consumption remains the largest environmental and logistical concern. According to a September 2022 report by the White House Office of Science and Technology Policy, global crypto mining consumes between 120 billion and 240 billion kilowatt-hours annually—more than entire nations like Argentina or Australia.
To mitigate strain on Arkansas’s power grid, Act 851 includes explicit language requiring mining facilities to “operate in a manner that causes no stress on an electric public utility’s generation capabilities or transmission network.”
This means operators must coordinate directly with the Arkansas Public Service Commission to ensure they don’t compromise essential services like hospitals or residential needs. In a notable incentive structure, Entergy Arkansas offers discounted electricity rates to crypto mines that agree to be first in line for power curtailment during peak demand.
“It’s a trade-off,” Senator Bryant explained. “We don’t want you to consume and take the consumption away from other consumers… and crypto got that.”
Noise Pollution: Living Next to a Mine
Another community-level challenge is noise. Bitcoin mining rigs generate constant humming and mechanical sounds, often compared to industrial HVAC systems running nonstop.
Mayor Robinson noted that while one sound barrier wall has been installed near the Greenbrier facility, it may inadvertently redirect noise southward due to its curved design. “It would be annoying if you lived there seven days a week,” he said. “And it's probably dropped their property value to dead zero—that’s the main thing.”
Act 851 attempts to address this by mandating compliance with local noise ordinances. However, a critical limitation exists: if a county lacks pre-existing noise regulations, it cannot impose new ones specifically targeting crypto mines. The law equates digital asset mining businesses with data centers, preventing discriminatory zoning or regulatory practices.
While this protects investor certainty, it also limits local control—especially in rural areas where residents may have little recourse once a facility opens.
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Foreign Ownership Concerns and National Security
Perhaps the most sensitive issue involves questions about foreign ownership, particularly ties to China. Recent reporting has drawn attention to LLCs operating crypto mines in Arkansas with suspected links to Chinese entities.
Though Ozarks at Large has not independently confirmed these connections, growing scrutiny follows Governor Sarah Huckabee Sanders’ October 2023 decision to remove a Chinese-owned seed company from agricultural land under Act 636, which restricts foreign ownership from certain nations.
Senator Bryant acknowledged these concerns and confirmed he has reached out to Attorney General Tim Griffin for review.
“They are reviewing it, researching it, and going to address it if it violates the law.”
He cautioned against overreach, recalling a failed prior proposal to ban all land sales to foreign nationals: “You have landowners in Arkansas who want to be able to sell their land for their best and highest profit.” He likened it to picking a stick from a bundle—“Be careful which one you pick, because the bundle might unravel.”
Frequently Asked Questions (FAQ)
Q: What is Act 851 in Arkansas?
A: Act 851 (formerly House Bill 1799) is legislation that regulates cryptocurrency mining in Arkansas by ensuring fair treatment for operators while requiring compliance with utility and environmental standards.
Q: Does crypto mining use a lot of electricity in Arkansas?
A: Yes, crypto mining is energy-intensive. However, under Act 851, facilities must avoid stressing the power grid and may face shutdowns during high-demand periods to protect critical services.
Q: Can local governments ban crypto mines?
A: Not easily. The law prevents localities from imposing stricter rules on crypto mines than those applied to data centers unless existing ordinances already cover noise or zoning.
Q: Are there environmental concerns with crypto mining?
A: Major concerns include high electricity usage and water leaks from cooling systems. While not inherently polluting, poor maintenance or unchecked growth could strain resources.
Q: Is foreign ownership of crypto mines regulated in Arkansas?
A: There is no specific law targeting foreign-owned crypto operations yet. However, state officials are reviewing potential national security implications.
Q: How does Act 851 protect property rights?
A: It ensures that investors who comply with regulations won’t be arbitrarily expelled, promoting long-term investment and legal predictability.
Final Thoughts: Innovation vs. Community Impact
Cryptocurrency mining presents both opportunity and challenge for Arkansas. On one hand, it brings capital investment, job creation potential, and technological modernization. On the other, it tests the limits of infrastructure, local governance, and public trust.
Act 851 represents an effort to strike balance—but its long-term success will depend on transparent enforcement, responsible corporate behavior, and ongoing dialogue between lawmakers, utilities, and citizens.
As blockchain technology continues evolving, states like Arkansas are on the front lines of crafting policy that supports innovation without compromising community well-being.
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Core Keywords:
- Cryptocurrency mining
- Arkansas legislation
- Act 851
- Energy consumption
- Noise pollution
- Digital asset mining
- Utility strain
- Foreign ownership concerns