Two crypto mining restriction bills have been passed by the Arkansas State House. If enacted, these bills would prohibit such activities within the state.
Currently, the bills are being deliberated upon and haven’t advanced to the stage of becoming law; they provide the foundation for future talks that could result in legislation.
On the 17th of April, senators conducted a Senate meeting to address various issues relating to cryptocurrency mining, including noise control, foreign investment, and proximity to residential neighborhoods.
Two out of the eight bills presented to the House of Representatives on April 17 have been passed into law, while the Senate endorsed just one bill concerning cryptocurrencies over the past week.
There’s considerable debate amongst people about the need to amend Act 851 and the extent of changes it should undergo. The relevant committees are set to deliberate on this matter, with a possible vote on passing new laws during the ongoing fiscal session or the next one.
The Arkansas Data Centers Act of 2023, as stated in the bill, is designed to oversee Bitcoin mining operations within Arkansas. This includes establishing guidelines for miners while shielding them against unfair limitations and taxation.
The time-consuming and power-hungry process of Bitcoin mining is facing criticism due to the significant amount of electrical waste it produces. As reported by Investopedia, this digital currency’s mining activity generates over 77 kilotons of electrical waste annually.
In countries outside the United States, crypto mining presents legal challenges as well. For instance, senators in Paraguay have proposed a bill to ban crypto mining temporarily due to concerns about unlawful mining operations. These mines allegedly misuse electricity, leading to power theft and disruptions in the electrical supply.
The suggested law aims to limit the setup of new crypto mining sites and prohibit activities related to creating, safeguarding, storing, and exchanging cryptocurrencies.
Despite the delay by Paraguayan senators in passing the mining ban, authorities are currently considering the benefits of allowing miners to purchase surplus electricity generated from the Itaipu hydroelectric plant.
Miners face intensity as Bitcoin’s scheduled halving approaches this week. Based on Markus Thielen’s assessment from 10x Research, miners could sell approximately $5 billion in Bitcoin within the ensuing months post-halving.
“This selling surge could prolong for four to six months, causing Bitcoin to possibly move horizontally during that time frame – a pattern observed after previous halvings,” the person explained.
Thielen added that the crypto markets could experience another difficult period, potentially encountering a tough six-month stretch during the summer season.
In spite of the obstacles, the CEOs of Marathon Digital Holdings, Riot Platforms, and CleanSpark in the forefront of crypto mining continue to express positivity, according to previous reports from crypto.news.
Mining businesses may offset a projected $10 billion yearly loss from the Bitcoin halving through their efficient cost structures, cutting-edge mining technology, and heightened cryptocurrency demand.
Mining companies are optimistic that the increased demand from new Bitcoin spot ETFs will push up the cryptocurrency’s price enough to make up for any negative impacts of the update. Since their launch by traditional asset managers in January, these ETFs have seen a net inflow of over $12 billion according to SoSo Value’s crypto finance data.
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2024-04-18 14:02