A bill to regulate Bitcoin mining has passed both the House of Representatives and the Senate and is currently awaiting approval from the Governor’s office. This landmark law gives crypto miners the same rights as data centers
Security of Crypto Mining
“Arkansas Data Centers Act of 2023The US state of Arkansas is expected to regulate Bitcoin mining and protect crypto miners from discriminatory regulations and taxes. This development is a major milestone in recognizing the value of crypto operations. The Law Crypto miners in Arkansas provide a safe environment to conduct their business, knowing they are legally protected.
Notably, the bill passed quickly after it was proposed by Senator Joshua Bryant on March 30. The legislation’s status page shows that Arkansas state lawmakers recognize that data centers create jobs, pay taxes and provide overall economic value to local communities.
The approved law states that a crypto miner must “pay applicable taxes and government fees in acceptable currency forms, and must operate in a manner that does not stress the generating capacity or transmission network of an electric utility.”
Conflicting approaches to crypto operations
Arkansas and Montana have shown that some US states recognize the potential of crypto activities. Montana’s Senate A The bill was passed To protect the miners operating in the state. The bill aims to protect miners from taxes on digital assets used for payments and eliminate power tariffs that discriminate against home-based crypto miners and digital asset companies.
In contrast to these positive developments, New York has taken a different stance. Last November, Governor Cathy Hochul signed the Proof of Work (PoW) Mining Ban Act, banning crypto mining operations in the state for two years. At the federal level, crypto miners in the US could eventually be taxed 30% of electricity costs under a budget plan. President Joe Biden on March 9 Submitted and aims to “reduce mining activities”.
Clearly, there are still debates at the state and federal level about how crypto activities should be regulated and taxed.
