The Arkansas State Senate has passed two bills aimed at prohibiting cryptocurrency mining. Although these bills have not yet been fully implemented as part of the legal system or policy, they serve as a foundation for future discussions and potential legislation.
During a recent Senate session held on April 17th, senators raised various concerns regarding cryptocurrency mining, including noise reduction strategies, the impact on foreign interests, and the appropriate location of mining operations in relation to residential areas.
Out of the eight bills presented by the House, two were successfully passed, despite the House only approving one bill focused solely on cryptocurrencies last week. The ongoing debate revolves around the refinement of Act 851 and the specific details that need to be addressed. Committees will further discuss the proposed legislation before it is passed by the General Assembly during this fiscal session or the next.
These developments in Arkansas have implications for the upcoming Bitcoin halving. The Arkansas Data Centers Act of 2023, which regulates Bitcoin mining activities in the state, has drawn criticism due to its carbon-intensive and wasteful nature. According to Investopedia, the energy consumption associated with Bitcoin mining leads to the generation of over 77 kilotons of electronic waste annually.
Cryptocurrency mining also presents challenges and legal issues on a global scale. Lawmakers in Paraguay are considering temporarily suspending crypto mining activities due to unauthorized mining operations that have resulted in excessive electricity consumption. Proposed legislation in Paraguay primarily focuses on the construction and operation of facilities involved in the creation, storage, maintenance, and exchange of cryptocurrencies.
However, some Paraguayan senators are advocating for the supply of excess energy generated by the country’s highly efficient hydropower plant to mining companies, thereby addressing the issue of excessive electricity consumption.
In addition to these regulatory developments, miners are currently facing pressure due to the upcoming Bitcoin halving. Markus Thielen, the head of 10X Research, has stated that the institution is prepared to sell up to $5 billion worth of mined Bitcoins within a month of the halving.
As a result, Cantillon believes that the price of Bitcoin may experience a period of selling pressure lasting four to six months following the halving. This would result in a sideways movement of Bitcoin, similar to what has been observed in the past.
