Some congresspersons in Arkansas have used the formulation of Senate Bill 60 (SB 60) to address what some stakeholders consider to be excessive localization of cryptocurrency mining facilities near army complexes.
Senator Ricky Hill and House Speaker Brian Evans introduced a bill on January 15th to set up a 30-mile exclusion zone around any military installation, including bases, hospitals, arsenals, and clinics. This legislative action has been taken against the backdrop of escalating national security threats, environmental effects, and the health of societies.
Concerns over national security
The proposed bill follows recent events in Cabot, Arkansas, where Interstate Holdings, a Florida-based real estate investment firm, was constructing a cryptocurrency mining facility just four miles from the Little Rock Air Force Base. Senator Hill also said that the construction could have been done in the wrong place, which may have been dangerous to the country’s security.
Local officials and residents have also spoken about the liabilities that may be occasioned by such operations’ close proximity to strategic defense assets. Senator Hill has expressed concern about how bad actors will likely deploy crypto-mining to cause insecurity. “This is a national security concern,” said Hill when local authorities started questioning the company’s intentions of locating the factory near the airbase.
Environmental and noise concerns
However, other than national security, which has been discussed earlier, environmental and noise pollution have been given as other reasons why the bill seeks a buffer zone. Mr Kincade, the Mayor of Cabot, noted the inconvenience associated with the operations of cryptocurrency mining facilities, which usually cause a lot of noise and environmental stress. “These centers produce noise irritations and pollution which are detrimental to our community people, domestic animals, wildlife, environment and health,” Kincade said.
As stated above, the US Congress bill does not seek to decommission already existing crypto mining facilities where the infrastructure is built and used by the decree of the last year of the legislating year 2024. This exemption has been designed to cover the investments of established players who have already invested in the new ventures.
Broader regulatory trends
The States is not alone in dealing with the effects of cryptocurrency mining on communities and security. The Biden administration recently prevented a Chinese-related crypto mining company from setting up shop close to the Francis E. Warren Air Force Base in Wyoming. Even national politicians, including Senator Elizabeth Warren, have also expressed concerns about threats targeting energy grids and the environment.
However, the bill has not been well-liked, and several industry stakeholders have come out to oppose the move. Interstate Holdings Vice President Dustin Curtis denounced the legislation, saying it seeks to pin crypto business. He even affirmed that the Cabot facility meets all state and federal noise and environmental standards. He pointed out that it has lower noise levels than the highways near the airport.
While the people of Arkansas consider the recently proposed SB 60, any decision made on the bill could have an enormous impact on how state authorities would approach the relationship between technology, security, and environmental impacts. The proponents and opponents of the bill still elaborate on the effects the bill could have on the future of the crypto-mining industry and people in the regions.