Arkansas State Assembly, approved two bills that could restrict cryptocurrency mining in the state. Although these bills have not yet become full-fledged laws, they set the stage for further discussions that could lead to potential legislation. Concerns such as the proximity of crypto mines to residential areas were addressed during the Senate hearing on April 17.
Ongoing Criticism in the Mining Sector
The Senate approved only one bill concerning cryptocurrencies last week, however, two out of eight bills presented to the Assembly on April 17 were accepted. There are significant discussions about whether Bill No. 851 should be amended and the level of detail these changes should entail. Committees will discuss the issue before potentially passing a law in the current or next fiscal session.
According to the bill, the 2023 Arkansas Data Centers Act aims to regulate the Bitcoin mining industry in the American state, create rules for miners, and protect them from discriminatory regulations and taxes. Bitcoin mining, known for its long and energy-intensive process, faces criticism due to the waste it produces. Investopedia notes that Bitcoin mining generates over 77 kilotons of electronic waste annually.
Mining Sector on the Agenda in Paraguay
Crypto mining faces legal challenges outside the United States as well. Paraguayan legislators proposed a bill temporarily banning crypto mining and related activities in the South American country, claiming illegal crypto mines were stealing power and disrupting the electricity supply.
The proposed legislation aims to ban the establishment of crypto mining facilities and activities involving the creation, protection, storage, and trading of cryptocurrencies. However, Paraguayan senators halted progress on the mining ban, and officials are now considering the benefits of selling excess energy from the Itaipu hydroelectric plant to miners.
Miners face pressure this week due to the upcoming Bitcoin halving event. According to Markus Thielen, head of research at 10x Research, miners could liquidate $5 billion worth of Bitcoin in the months following the halving event:
“This sale’s impact could last four to six months, explaining why Bitcoin might move sideways in the coming months, as it did after previous halving events.”
