In a landmark move, Arkansas has become the first state in the US to pass a bill protecting the right to mine Bitcoin (BTC) and other digital assets.
Bitcoin Law Passed by Senate and House of Representatives Awaits State Governor's Signature
Known as the Arkansas Data Centers Act of 2023, the bill was passed with overwhelming support by both the House and Senate and is now set to be signed by Governor Sarah Huckabee Sanders.
The bill aims to regulate the Bitcoin mining industry in the state and prevent fraudulent business practices. It also highlights the economic value and benefits of data centers that create jobs, pay taxes and contribute to local communities.
Under the bill, Bitcoin mining businesses can operate in the state if they comply with state laws regarding business rules and tax policies, operation and safety regulations, public service rules provided by a government agency, and state and federal employment laws.
The bill also requires miners to pay applicable taxes and government fees in acceptable currencies and operate in a way that does not put pressure on an electricity utility's generation capacity or transmission network.
The bill also allows individuals to mine Bitcoin at home according to applicable utility rules and rates. It also defines key terms such as digital asset, digital asset miner, digital asset mining business, node and home mining definition.
The bill was drafted with the help of the Satoshi Action Fund, a nonprofit that advocates for Bitcoin adoption and education. The fund considered the adoption of the bill a historic moment for Bitcoin and Arkansas.
*Not investment advice.